MSE News: Payday loan adverts reported to watchdog

Former_MSE_Helen

"Payday loan adverts from Wonga, Pounds to Pocket and Peachy.co.uk have been reported to the ASA by Citizens Advice..."

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Payday loan adverts reported to watchdog



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RuthnJasper

Excellent news; and not before time either.

tomtontom

Such a shame that grown adults cannot be trusted to make an informed decision

Caddyman

tomtontom wrote: »

Such a shame that grown adults cannot be trusted to make an informed decision

I agree, to a point. Sadly when people are so desperate they have to resort to payday loans just to get by, then sometimes those grown adults that would usually make perfectly rational decisions find through circumstances, that they can no longer rationalise and so do need someone to step in and regulate.

I'm not saying they're (payday loan companies) are all bad, but there are some out there who do the very best they can to appeal to those most vulnerable.

GingerFurball_2

tomtontom wrote: »

Such a shame that grown adults cannot be trusted to make an informed decision

It's not about not trusting adults not to make informed decisions, it's about misleading advertising, which in the case of payday loans, can lead to absolute misery.

If I brought out a new beer and tried to advertise it by suggesting that drinking 10 of them a night would make you irresistible to the ladies and would make you a huge success at work, then that advert wouldn't see the light of day. Payday lenders who suggest that people borrow money from them to blow on shopping sprees should be treated in exactly the same way.

Payday lenders aren't necessarily a bad thing, but they must be responsible with their lending and they must be responsible with their advertising.

timbo58

Playing devils advocate here (so no firing squad please as I heartily agree with the sentiment & naively stated once on MSE 'whats wrong with an overdraft -surely thats what it's for?!).

The ASA only deals with 'misleading/potentially misleading in their opinion' issues don't they?

i.e. surely it's up to the person borrowing the cash what they spend it on?
ok its damn irresponsible to suggest it could be used for a spending spree or non essential purchase/distress purchase but surely it's not in breach of ASA rules in that respect alone?

The ASA is funded by a levy on advertising, surely it's better for them to use their funding to go after the really dodgy misleading stuff?

redux

tomtontom wrote: »

Such a shame that grown adults cannot be trusted to make an informed decision

In another sphere, there's an item on the TV about vulnerable elderly people being bullied over the phone into buying insurance for their Sky installation. One person bought this 4 times in a month.

Of course the targetting of cute old people in payday loans advertising must be based on much more noble motives than wishing to be seen as cynical parasites.

hanlou007

"Day in, day out Citizens Advice is helping people deal with the devastation caused by irresponsible payday lending"

Obviously not the fault of the irresponsible person who asked for the loan ??

RuthnJasper

tomtontom wrote: »

Such a shame that grown adults cannot be trusted to make an informed decision

I agree, to a point. But spend a few minutes on the Loans thread of the Forum and it's clear that a vast number cannot.

Monkeyballs

tomtontom wrote: »

Such a shame that grown adults cannot be trusted to make an informed decision

I think that's the point of the article, if someone isn't all that savvy then they might see an advert suggesting a loan is used to pay for a holiday or a night out which is totally the wrong thing to use these loans for.

If the PDL's advertised them for their intended purpose then there wouldn't be a complaint...

Don't get me wrong, I'm not saying that PDL's are a good idea but I do think there is a place for them - just not for "luxuries".

MB

Monkeyballs

RuthnJasper wrote: »

I agree, to a point. But spend a few minutes on the Loans thread of the Forum and it's clear that a vast number cannot.

I was just thinking... Maybe I've just missed them but how many people post on forums asking for help after using a PDL which they took out to pay for a weekend away or a boozy weekend? Everyone was always driven to it because of the rising cost of living, hardship imposed upon them by factors beyond their control (eg. loss of job) or (like in my case) a gambling problem? Hmmm...

MB