Super-levy cost hidden
FARMERS tempted to spread the cost of their super-levy payments should do their sums carefully.
David Kirby, who milks 100 cows at Low Farm, Ebberston, near Scarborough, received a leaflet from Growcash, endorsed by Milk Marque, which offers farmers a headline total interest payment of just 2.2%.
But he has discovered that the true cost is an annual percentage rate of 20.2%. "It is couched in terms that would fool most people." The leaflet states that a levy liability of £3000, paid in four equal instalments from September to December, will attract an interest charge of just £66. But Mr Kirby points out that Growcash also asks for a £50 "set-up" fee.
Growcash is adamant the deal represents good value and it is not bound to quote interest as APR.
"A lot of other companies charge £250 for a set-up fee – we only charge £50," says the companys Rebecca Kay. *