View more on these topics

Govt cracks down on payday lender adverts

The Government is launching a crackdown on payday lenders by restricting how they advertise and forcing lenders to help people with multiple loans.

Treasury 480

The Guardian reports that the Government will act after a report it commissioned from the University of Bristol recommended restrictions on the time of the day when adverts could be shown.

It also suggested that the annual interest rate of loans should be displayed more prominently on the face of adverts.

A number of payday lenders have seen adverts banned by the Advertising Standards Authority in recent months as the short-term credit market has boomed.

Lenders will also be forced to confidentially share data on certain applicants to stop them taking out several loans with different lenders.

The Financial Conduct Authority is set to take over regulation of payday loans in April 2014 and will have the power to impose unlimited fines to wrongdoers.

Recommended

/s/n/g/Lloyds_TSB.jpg

Lloyds tops FOS complaints data

Lloyds Banking Group has emerged as the business group most complained about to the Financial Ombudsman Service for the second half of 2012.

Letters to editor MS 480

Letters to the editor

I was interested to read John Charcol senior technical manager Ray Boulger’s blog on Mortgage Strategy Online last week about Bank of England deputy governor Paul Tucker’s comments on negative interest rates. Boulger pointed out that Tucker has previously raised the topic of negative interest rates and the fact that he has now chosen to […]

Guide

Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • peter stimson 7th March 2013 at 11:31 am

    There is something else to think about which drives a lot of the payday loan business – Gambling

    De-regulation of the gaming industry is driving peole into debt and then the payday lenders

    Seen the number of TV ads for on-line bingo ads and on-line casinos?

    A fool and his money are easily parted and this statement invaraibley applies to the bottom 10% of society

    Fix gambling and you largely fix payday…

  • Des Platt 7th March 2013 at 1:56 am

    We had someone on here yesterday saying it was enterprising to recommend these loans. £ 15 commision for £100 pound of lending. As long as we have brokers as corrupt as that, the 99 per cent doing a good job will be pilloried underservedly.

  • John Constable 6th March 2013 at 4:19 pm

    Maybe the adverts on TV should have statutory warning banner similar to those displayed on cigarette packets

    e.g.

    WARNING: THESE LOANS CAN SERIOUSLY DAMAGE YOUR FINANCIAL HEALTH.

    It won’t stop the debt addicts e.g. the Government, but might make others pause to think.

  • Russell Watson 6th March 2013 at 1:25 pm

    I think anybody who works for these disgraceful companies should think about what they do to peoples lives. They are the worst kind of financial services and should all be put out of business!

  • Desmond Platt 6th March 2013 at 10:18 am

    Agree completely Mary. Well done on making the complaint. The radio adverts are sickening in the way these parasites make it sound like they are people’s best friends and it is all so painless.

  • Robin 6th March 2013 at 10:14 am

    This is nowhere near enough action for these ‘back street moneylenders’ with their extortinate interest rates. I remember credot cards being pilloried not too long ago for charging up to 30% APR. These thieves are charging up to 2000+ %. Cap the maximum APR to at least 100% and we may have a fair company profit margin.

  • Laurie 6th March 2013 at 10:14 am

    As usual getting involved after the event – the investors in pay day lending have had their returns and will now be looking for the next cash cow to milk. Always ahead of the FSA and the Government as usual.

  • Des Platt 6th March 2013 at 10:13 am

    Quite Mary. Wonga’s adverts on the radio enrage me; I never see TV adverts but no doubt they are just as bad. Parasites.

  • Mary Lockyer 6th March 2013 at 9:44 am

    Amazing and not before time, I complained about the lack of any APR on all of Wonga’s advertising and it was not upheld by the Advertising Standards Agency, they should now hang their heads in shame, these pernicious adverts could and should have been stopped ages ago.