A television advertisement for under-fire payday lender Wonga has been banned by the industry's watchdog.
The Advertising Standards Authority (ASA) found the commercial, featuring a man writing car repair figures on a napkin before calculating costs, did not include the interest rate payable.
A complaint about the advert had been lodged by the charity Citizens Advice.
The script said that customers would "save money", but the ASA deemed this a comparison with other short-term lenders.
The decision by the watchdog means it cannot be broadcast in its current form again.
Citizens Advice has now had five companies' adverts banned by the ASA, over opaqueness in the true cost of short-term loans.
Wonga and other lenders have been heavily criticised in recent months over the annual percentage rates (APR) charged.
On its website the company makes clear its APR is almost 6,000% if the short-term loans are not paid in full, on time.
Citizens Advice chief executive Gillian Guy said: "Payday loan adverts that break the rules should be taken off the air.
"Adverts must be clear about what taking out a loan means and how much it will cost.
"The consequences are really serious when payday lending goes wrong. High interest rates and fees can mean that a small loan balloons into a huge debt."
This year has been an annus horribilis for Wonga, and the wider sector.
In September Wonga revealed its full-year 201 profit fell by 53% to £39.7m, after it set aside a provision of £18.8m to compensate 200,000 customers over technical problems and the tactic of sending fake legal letters to those in default.
And last week it wrote off the debts of 330,000 customers after admitting it lent money to people who could not afford to pay back borrowings.
The company's new chairman Andy Haste said the company needs "real and urgent" change to make Wonga an "accepted business".
He added: "We want to ensure we only lend to those who can reasonably afford the loan in question."
Anda sedang membaca artikel tentang
Wonga Ad Banned Over Interest Rate Omission
Dengan url
http://kerjasendirianda.blogspot.com/2014/10/wonga-ad-banned-over-interest-rate.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Wonga Ad Banned Over Interest Rate Omission
namun jangan lupa untuk meletakkan link
Wonga Ad Banned Over Interest Rate Omission
sebagai sumbernya
0 komentar:
Posting Komentar