Payday loan ads may be 'reined in'
By Our Parliamentary correspondent, campaignlive.co.uk, Thursday, 01 March 2012 10:50AM
Ministers have threatened to crack down on ads by credit companies offering short-term "payday loans" at high interest rates.
The move follows growing pressure from MPs in all parties, who accuse the industry of running ads that target vulnerable groups, such as people on benefits, and making loans without being sure the recipients can repay them.
The Department for Business, Innovation and Skills will decide its next moves after studying the findings of an investigation by the Office of Fair Trading. Government sources said ads would be "reined in", if necessary by legislation, unless the industry puts its house in order.
After carrying out a sweep of more than 50 payday lending websites, the OFT has written to seven trade bodies demanding that advertising standards are improved.
Norman Lamb, the Consumer Affairs Minister, said: "We look forward to seeing the findings, which, where necessary, will be used to take further enforcement action and drive up standards. This includes improving consumer protections and having a transparent lending market."
Wonga.com was the largest spender on above-the-line advertising in 2011, with Quickquid.co.uk placed second.
MPs claim the payday loan market "exploded" to an estimated £1.9 billion in 2010.
The Labour MP Yvonne Fovargue, who chairs an all-party group on debt, has tabled a bill to make advertisers flag up free debt advice.
The OFT has already acted to stamp out ads designed to look like those by charities offering free advice.
This article was first published on campaignlive.co.uk
- Senior Digital Designer Twist Recruitment £35000 - £42000 per annum + benefits, City of London
- Group Insight Director, Technology & Financial Jarlett de Grouchy £65000.00 - £80000.00 per annum + bonus, London (Central), London (Greater)
- Commercial Head of Branded Content-Established Digital Business Ultimate Asset £65000 - £76000 per annum + bonus and huge benefits , London (Central), London (Greater)
- Senior Sales Executive - Performance & Brand - Emerging Tech Ultimate Asset £40000 - £50000 per annum + commission & excellent benefits, London (Central), London (Greater)
- Content Strategist Zebra People £300 - £400 per day, London (East), London (Greater)
- Samsung calls global advertising and media review
- British Airways moves paid search account to Forward3D
- Watch the first YouTube clip, nine years on
- M&C Saatchi's Enyi Nwosu takes global role at Mindshare
- Post Office reviews advertising, DM and digital accounts
- Karmarama grabs Coppafeel! breast cancer charity account