MSE News: Payday loan ads should be banned from kids' TV, MoneySavingExpert.com says

JezR

Clive_Woody wrote: »

Personally I would like them (Pay day loans) to be given the same restrictions as cigarette advertising.

In the era when cigarette advertising was legal on TV, advertising by moneylenders was forbidden. Indeed it was top of the list of 'unacceptable products and services', followed by matrimonial agencies and fortune tellers.

Current adverts have to comply with the Consumer Credit (Advertisements) Regulations 2010, which is a statutory instrument, although the BCAP TV Code could put additional restrictions if the committee wished.

bloxwich1934

Adverts. like WONGA should be totally banned. If someone wants/needs a loan, then they should have to search for it. This would put quite a lot of people off. Also, there should be a government set limit on the % interest payable.

pinkun

I agree, all advertising for loans should be banned, both on the tv and by bombarding email accounts. My son has mental health problem, he is not a child but a grown adult, but he is bombarded on a daily basis. His issues mean that he is not actually responsible for his own actions and despite filters on emails, and trying to get to the phones first they still get through and then it is exacerbated by being all over the tv! On a separate issue there should be a register of anybody who has mental health issues so that lenders can be prosecuted for harrassment if they continue to contact people after checking the register.

dotdash79

Some blunt things being suggested here, when a bit of parental responsibility wouldn't go a miss.

People can get into trouble with any finance product, should we ban them being advertised?

In regard to the post 14 have you thought about putting a notice of correction on your sons credit file? Not all people with mential health problems have issues with money, and creating "another list" isn't the answer.

the_insider

pinkun wrote: »

On a separate issue there should be a register of anybody who has mental health issues so that lenders can be prosecuted for harrassment if they continue to contact people after checking the register.

As someone who suffers from mental ill health I find your comment offensive. Just because someone has mental health issues why should they be treated differently? I agree with most of the comments on this thread re: advertising these loans but failing to contact someone about a product that could potentially benefit them because of their mental health equates to discrimination!

Sinhanada

I don't think there is ever going to be an easy answer to this. Mental and physical disabilities affect people in different ways and to different degrees. I agree that creating another register is not the answer, but I would also suggest that if a financial product was aggressively targeted at someone who suffers then that institution should write that off. It would need strict enforcement from the OFT.

Lastly, and though I do not agree with the companies, I can see that they offer a benefit which most banks do not. They help (loosely worded) people who would otherwise be forsaken by their own banks. But they need to make sure that they are the only financial provided lending a short term loan, not roll over more than twice (at a maximim) and once taken you should not be able to apply for a second loan - anywhere for one whole month.

My personal suggestion anyway!

Sunny_Day

Once upon a time, there was prohibition against "extortionate credit agreements" - now replaced by "unfair relationships." That opened the door to all these payday lenders to offer "short term" loans at what looks like modest amounts but which are actually very high rates of interest. Sure, risk varies according to individuals' ability to manage money, and those who take out payday loans may not have much ability to manage money - or maybe they do, but some emergency happened - but anyways greedy lenders take advantage and oppress such individuals even more.

We need a return to capping interest rates for loans to individuals. In fact, the whole payday loan area needs better regulation.

Ultimately people with no debts will end up paying - because those with overwhelming debts go bankrupt, writing off legitimate debts as well as their payday loans. The costs of businesses whose legitimate debts are thus written off will get passed on to every other consumer or purchaser.

Schools are supposed to be teaching financial education and if kids learn to avoid payday loans that'll be good. But will that be taught?

MSE, set up some ads with catchy jingles warning against going into debt!!

condoghost

the_insider wrote: »

As someone who suffers from mental ill health I find your comment offensive.

Is the comment you have quoted so offensive given that the person has a son who has mental health problem, "he is not a child but a grown adult, but he is bombarded on a daily basis. His issues mean that he is not actually responsible for his own actions and despite filters on emails, and trying to get to the phones first they still get through and then it is exacerbated by being all over the tv!"???:(
Your taking a section of their post out-of-context perhaps gives the wrong impression. I'm sure the parent is only looking at possibilities to protect their son from being targeted with such ads, the same way we look to protect ourselves from unwanted cold-calls by registering our details with the TPS.

condoghost

moneysaver2014 wrote: »

Is there yet an on-line petition to the Government that we can sign regarding this?

Here we go but not allowed to post the link directly:
epetitions(dot)direct(dot)gov(dot)uk(forward-slash)petitions(forward-slash)42019
Have to be quick as the CLOSING DATE is 20 November 2013!!!

jasonwatkins

Parents have some strange priorities. Quite happy to buy their under-age children games like Call of Duty and Grand Theft Auto. Others let their children watch age-inappropriate films and others even let their children have unrestricted access to the internet.

But PayDay loan adverts ?. OH MY GOD NO ! WE MARCH ON DOWNING STREET !!

Further proof why I can't stand the man ..

Martin Lewis, the founder of website Moneysavingexpert.com, called for the ads to be banned from children’s TV. He said: ‘These lenders are essentially grooming children to be the next generation of borrowers.’

http://www.dailymail.co.uk/news/article-2487621/Martin-Lewis-Wonga-adverts-grooming-children.html