Thursday, 16 May 2013

Payday loan TV advert banned by the Advertising Standards Authority

Did any of you see the Payday loan advert starring Kerry Katona? Or maybe you have since read about it in the press? You won’t get a chance to see it now. The advertising Authority banned the advert labelling it as irresponsible advertising.

According to the press, the Authority were inundated with complaints about Ms Katona’s flagrant use of her own bankruptcy,thenciting a PayDay loan as a source of very easy, fast cash in times of real financial trouble.

We agree with the Authority’s decision. It was an irresponsible advert in the extreme. To give people in financial difficulties the impression that a PayDay loan is an answer to long term financial problems is irresponsible in the extreme and shows a total disregard for the rules of responsible lending that all lenders must adhere to.

While we will never condone blanket censorship of advertising, on balance, the decision to ban this advert was the only fair and just thing to do. And it was the only way to protect the consumer from being misled.

Payday Loans are short term loans, designed to give borrowers access to funds for an extremely short period of time. They are not designed for use as cash-pots to supplement meagre incomes or as a means for paying off other longer term serious debts. To consider this type of loan as a way to address larger debt problems has the potential to compound your debts and your stress levels, not deal with them.

Think very carefully before applying for a short term cash advance. This is an option if you have regular employment and you can afford it in the short term. If you are in debt, seek expert advice, don’t add to your borrowings in the hope of a fast solution.

Most importantly, don’t be misguided by lenders who blatantly attempt to sell you money in such irresponsible ways as we witnessed on that TV advert.


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