Loan adverts 'facing ban from watchdog'

30/04/2009

There is to be a crackdown on personal loans TV adverts, the Advertising Standards Authority (ASA) said in its latest annual report.
Released yesterday, the document criticises some providers' TV spots, which according to the watchdog downplay the way in which unsecured credit can do damage to finances.

The current economic downturn makes the potential effects of the adverts worse according to the ASA.

More and more people are facing financial strain due to rising unemployment and the recession.

Speaking to the Independent newspaper, ASA chairman Lord Chris Smith gave an example of the kind of promotion the ASA was unhappy about.

He said: "In the Picture Financial Services ad, there was a housewife surrounded by a busy household of kids getting ready for school and the husband was coming down the stairs and grabbing a slice of toast.

"Meanwhile she was on the phone saying, 'So, a loan of £25,000? Yes, that will be all right. Thank you very much', and putting the phone down."

The tightened-up regulations also aim to restrict adverts which describe consolidation loans, which can carry high rates of interest, as an "easy" monthly payment.

Lord Smith added: "I get irritated when I think consumers are being sold something in a very tempting way which is going to have huge financial and personal consequences for them. That to me is irresponsible advertising."

Tags; Debt Management and Banking, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•