Dial4aloan has withdrawn credit advertisements following an approach by the Office of Fair Trading and have put procedures in place to ensure future compliance with the rules.
During a sweep of Scottish national newspapers the OFT found credit advertisements from Dial4aloan targeting homeowners.
The OFT considered these and subsequent advertisements to be misleading under the Consumer Credit Act.
The OFT considered the following aspects appearing in some or all of the advertisements to be misleading, the prominent depiction of a repayment example that was not accompanied by an indication of the duration of the repayments to be made.
The placing of a from APR in such close proximity to the repayment example that it gave the misleading impression that it was the APR for that example when in fact it was not.
Including the required credit advertising information in such a way that it gave the reader the misleading impression that it was not part of that credit advertisement.
The OFT took the view that the advertisements also breached the consumer credit, advertisement regulations 1989.
This was because to the APR of 8.4% was not shown as being a representative APR nor was it more prominent than the 6.9% from APR, the wealth warning was not prominent enough, only appearing in the small print and the postal address of the advertiser was not given.
Dial4aloan promptly withdrew their advertising following the OFT’s request. Following discussions with the OFT, Dial4aloan have set out clearly the steps that they will take in future to ensure that future
advertisements do not breach the relevant regulations, including the consumer credit, advertisements regulations 2004.
John Vickers, OFT chairman, says: “Consumers have a right to fair and accurate credit information when considering taking out a loan. Credit providers have a legal obligation to make sure their credit advertisements are not misleading.”