Advertising watchdog bans payday lender ad

The Advertising Standards Authority has banned an advert by payday lender Instant Cash Loans, trading as the Money Shop, following a complaint from a viewer that the APR rate was not “sufficiently prominent”.

Two complaints were levelled against a TV ad for the firm where a translucent box stated “Representative example: £100 for only £10 (normally £19.79*). Total amount repayable in a single payment of £110 in 30 days. Interest rate 10 per cent (variable). 219.1% APR representative.”

A viewer challenged the prominence of the ad while the ASA questioned whether the example and the representative APR rate were sufficiently clear and legible.

On the first point, the ASA ruled that the remaining standard information that made up the representative example should have been the same size as the RAPR and larger than the incentive. Since it was not, the ad was found to have breached the BCAP Code rule 14.11 on lending on credit.

The second complaint was not upheld as the ad was not ruled to have breached the code.

The ad is not allowed to appear again in its current form and Money Shop have been warned to ensure all ads comply with the legislation in future.