Should payday loan ads be restricted during TV shows aimed at kids?

Former_MSE_Wendy · 7 December 2015 at 6:37PM

The Broadcast Committee of Advertising Practice (BCAP) is asking for views on whether to introduce scheduling restrictions to ban payday adverts being shown during programmes aimed at children.

The aim of BCAP's scheduling restrictions is to limit the exposure of children and young people to the advertising of unsuitable products. So far this includes things like alcohol and gambling but it doesn't include any financial products.

This is an issue that MSE has campaigned on for years. See Martin's various blogs about grooming the next generation of borrowers.

Plus read our Payday Loans guide for cheaper alternatives if you're struggling with payday loans yourself.

If you have a view on whether payday ads should be restricted please tell BCAP what you think. It wants to hear your views.

:starmod: :starmod: :starmod: How to tell BCAP what you think :starmod: :starmod: :starmod:

Email your views to [EMAIL="jamesc@cap.org.uk"]jamesc@cap.org.uk[/EMAIL] before 5pm on Wednesday 16 December 2015.

Then please share your thoughts below. We’ll send this thread to BCAP before the deadline if you don't want to email too.

Which of the following statements do you agree with and why?

1 – No change to the current rules - scheduling restrictions are not necessary
2 – Restrictions are needed around programmes aimed at children below the age of 16
3 – Restrictions are needed around programmes for young people below the age of 18

It excluded a blanket 9pm watershed ban from the options as research shows a significant proportion of children and young people watch television after 9pm and a pre-9pm ban could result in the concentration of ads into a smaller amount of time.

Read on if you want to find out more about the BCAP consultation....

What is the BCAP consultation aiming to find out?

You can read the full consultation document on the Committee of Advertising Practice website but here's a quick summary...

So far BCAP says it has seen little evidence of harm arising from payday loan adverts and that it’s not sure there are causal links between advertising and pester power or the normalisation of payday loans to children.

However, it also says new restrictions would be unlikely to cost broadcasters any more to implement.

The existing rules state that:

Advertisements must be prepared with a sense of responsibility to the audience and to society - Rule 1.2

Advertisements must neither directly exhort children to buy a product or service nor encourage them to ask their parents, guardians or other persons to buy or enquire about a product or service for them - Rule 5.9

The new restrictions will aim to:

Protect adults with limited financial means from being pressurised by their children, who have viewed (and to some extent understood) payday loans advertisements.

Protect a section of society against the normalisation of payday loans as a way to manage finances, when better alternatives are available.[/CENTER]

joey2307 · 8 December 2015 at 9:16PM

As a maths teacher of children aged 11-18 I would say there should be restrictions regarding payday lenders aiming adverts at young people up to the age of 18.

Obviously some of these will watch TV at all sorts of time of day but many 16-18 year olds, possibly looking at going to university need to be able to manage finances on a tight leash. We have all seen that horrendous advert for student-loans-payday-loan.

Others in this age bracket may be going into some form of work will be drawn in with the temptation of quick, easy, same day money.

With many essential financial services such as mortgages bank accounts (arguably Cashback credit cards if used properly) now looking at payday loans as having a negative effect on someone's ability to obtain credit, young people may not be aware of the hidden consequences

Personally I would ban all payday loan adverts from TV, online and in magazines. People in real need of these products will find a way to find out about them, eg. Google search.

zhivago · 9 December 2015 at 11:56AM

I strongly believe that all payday loan adverts should be banned per-se and that a new rule limiting lenders to a charge of no more than 10% over bank base rate should be introduced.

More should be done to extend and enhance local credit unions.

lisa110rry · 9 December 2015 at 12:10PM

I think I agree with zhivago. However, if we're talking about young children, if managed properly by the adult supervising, it could be a good way to explain to young people the power of advertising and the iniquity of these payday loan vendors at an early age.

tgroom57 · 9 December 2015 at 12:36PM

zhivago wrote: »

I strongly believe that all payday loan adverts should be banned per-se and that a new rule limiting lenders to a charge of no more than 10% over bank base rate should be introduced.

I agree, ban them completely. Several adverts chained through a recent ad break at 9pm -I was nearly sick when I saw the interest rate. I am terrified that my adult daughter will see these as a quick fix. It's vile that these companies make enough money to afford tv adverts.

I wish we could go back to the days when every bank had a leaflet containing a table stating the interest rate & repayments for amount borrowed. Everything is too fluid, now.

Stevie_Palimo · 9 December 2015 at 12:41PM

Do they need to ban drink and other items to that may effect young children ?

Utter rubbish and it is all about bringing kids up properly here as opposed to plonking them down in front of the TV and blaming everything in the world for your own problems.

MallyGirl · 9 December 2015 at 1:09PM

lisa110rry wrote: »

I think I agree with zhivago. However, if we're talking about young children, if managed properly by the adult supervising, it could be a good way to explain to young people the power of advertising and the iniquity of these payday loan vendors at an early age.

Once I was sure that my DD understood my explanation of how interest worked on her bank account I have used these ads, and the APR they now have to quote, to emphasise how horrendous these products are. I told her that if she ever found herself considering one that she should come and talk to me first. She compared the 3% deposit interest she was getting on her savings to the 1295% quoted by Sunny and agreed that she was never, ever going near them.

Stevie_Palimo · 9 December 2015 at 1:25PM

MallyGirl wrote: »

Once I was sure that my DD understood my explanation of how interest worked on her bank account I have used these ads, and the APR they now have to quote, to emphasise how horrendous these products are. I told her that if she ever found herself considering one that she should come and talk to me first. She compared the 3% deposit interest she was getting on her savings to the 1295% quoted by Sunny and agreed that she was never, ever going near them.

You do realise that you will not pay 1295% on a loan that is per anum rate so if you borrow on average £100.00 for 30 days it will cost approx. £20 - £30.00 in charges here.

Flyonthewall · 9 December 2015 at 1:35PM

I think the adverts should be banned completely. The interest rates are stupidly high, but regardless of that too many people end up in debt because they can't afford to pay the initial amount back, nevermind about extra.

The adverts aren't aimed at children and it's not like children can take them out. As a child I would have completely ignored them adverts because they're boring! What kid cares about loans? However, it's possible that something will stick in the back of their minds and later on they'll remember about payday loans and go in search of them. So at the very least they should be banned between any programmes aimed at those under 18.

SusieB54 · 9 December 2015 at 1:48PM

The ads should definitely be restricted to over 18s

lisa110rry · 9 December 2015 at 2:15PM

MallyGirl wrote: »

Once I was sure that my DD understood my explanation of how interest worked on her bank account I have used these ads, and the APR they now have to quote, to emphasise how horrendous these products are. I told her that if she ever found herself considering one that she should come and talk to me first. She compared the 3% deposit interest she was getting on her savings to the 1295% quoted by Sunny and agreed that she was never, ever going near them.

Wonderful MallyGirl. Real life mathematics and economics. Jolly well done.

Should payday loan ads be restricted during TV shows aimed at kids?

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