The Advertising Standards Authority has banned an advert from pawnbroker Borro that appears to recommend taking out a high-interest loan to fund a holiday.
The ASA had three consumer complaints about the advert, in which a woman claims she can “do so many amazing things” such as start a business, pay school fees and “fly us to the Caribbean” by pawning a watch. The ASA deemed it to be encouraging ”frivolous spending of borrowed money”.
Advertising body Clearcast said on behalf of Borro the advert was not irresponsible because of the “relatively low” APR and the low risk of a loan secured against personal assets. But the ASA ruled the advert gave “an impression that careful thought was not required in advance of taking out a loan”.
Borro charges borrowers between 2.99 per cent and 6.99 per cent per month.