Personal Loan

On the contract, it says I’m being charged [prime + 0.5%] as the INITIAL rate which comes to about 6.75%. However, the bank rep is telling me that the rate actually being used (to compute the monthly payments) is close to 7.25% since they want to take into account any changes to the prime rate over the loan term. Am I being taken for a ride here ?

Contract should say exactly how the index (prime) is quoted; e.g. “as printed in WSJ” or whatever. Was that language included?