Regulator bans payday loan ads

July 31, 2014 No Comments

Payday loan adverts by two Greater Manchester companies have been banned by the Advertising Standards Authority (ASA).

Adverts from Worsley-based Sandhurst Associates Ltd, which trades as Spends4U.co.uk, and HotPond Media Ltd in Stockport, which trades as LoanMonarch.co.uk, must not appear again in their current form.

Both adverts were in the form of text messages.

The ASA ruled the adverts were socially irresponsible because of they encouraged a casual attitude towards taking out a loan and condoned borrowing for those who might not be able to afford repayments.

Sandhurst Associates said the messages had been sent to individuals whose numbers had been supplied by a lending company it worked with, all of which had applied for a loan through that lender and had a guarantor in place.

But the ASA said because the message did not refer to a guarantor, which was “material information”, it implied recipients could be approved regardless of their situation.

Meanwhile, HotPond Media said it had ceased using SMS marketing campaigns.

It added its loans came from a selection of lenders, including guarantor lenders, so its statement that county court judgements (CCJs) and defaults would not be the deciding factor in approval was justified.

But the ASA said the advert appealed to those with poor financial circumstances and “condoned borrowing for those who might not be able to manage repayment”.

The ASA said: “We’re committed to ensuring that the right levels of protection are in place for consumers and vulnerable groups, so that ads are appropriate and don’t cause harm.”

Last updated: 31st Jul 2014 at 08:15am
Source : insidermedia.com