20% Advertisements of loan and credit companies Break Rules Says FCA
The Financial Conduct Authority or FCA, has condemned payday loan companies for tempting children by presenting colouring-in promotions.
The financial watchdog says 100 or more advertisements out of the 550 that were checked have failed to be 'clear, fair and not misleading'
As per the an investigation carried out by the City regulator, the rate shows, one in five advertisements offered by credit and loan companies are responsible of such failure that can be called as misleading for the customers. The FCA scrutinized 550 or more adverts for a wide range of consumer credit products which included payday loans, debt management arrangements, credit cards, retail finance and logbook loans. It found that 108 out of them did not stand by the rules that put up pre-condition such the promotions must be "clear, fair and not misleading". Out of those 108 ads, 38 were associated to payday lenders, and debt management companies accounted for other 18 among them.
The investigation also discovered many examples of pitiable advertising all across different media which include print, in-store, online and direct mailing. FCA mentioned that in several cases the key information which is supposed to have been included in the ads were either omitted or were very difficult to locate.