ASA To Get Tougher On All TV Loan Ads

Wed, 29 Apr 2009

The Advertising Standards Authority (ASA) is seeking to ban all TV adverts for personal loan as part of a clampdown on the loan industry, according to the Independent.

The newspaper reports that the ASA chairman Lord Chris Smith may use a new social responsibility rule to toughen its position on ads which encourage viewers to take on reckless loans, such as those offering to combine existing debts into one easy monthly payment.

Under the new code from the Broadcasting Committee in Advertising Practice, the advertising watchdog will be able to take tougher action on commercials regardless of whether they are deemed misleading.

Speaking to The Independent, Lord Smith said: "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 ."

The chairman singled out adverts by UK lender Picture Financial Services, which is now in liquidation . One advert which the group banned showed a man playing football and being filmed by his wife at the same time as applying for a loan on the telephone.

The ASA said its Council "found the advert to be misleading for implying that consolidating unsecured loans was a decision that could be taken lightly."

Lord Smith said the ASA would advise companies on how to go about advertising loans and also revealed the body would focus its attention on price comparison ads due to concerns that the recession will lead to an increasing number of misleading claims .

The industry watchdog, which announced a record number of complaints about adverts in 2008, said it needed to be "vigilant" on behalf of the consumer as supermarkets, utilities and other companies’ battle for consumers with tight household budgets.
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