CAP issues payday loans guidance: Following a review of payday loan product advertisements, CAP has published new guidance to prevent advertisements that trivialise the serious nature of taking out short-term high-cost loans. Specifically, the guidance clarifies the spirit in which the rules should be interpreted, especially those rules that require advertisements to be responsible to their audience and society. Advertisements are likely to breach the rules if they:
- suggest loans are a suitable means of addressing ongoing financial concerns;
- condone non-essential or frivolous spending; or
- unacceptably distort the serious nature of payday loan products.
The guidance suggests that animation, catchy upbeat jingles and humorous themes are used with care, and proposes phrases to help payday loan advertisers communicate reasonable benefits of the product. The guidance comes into immediate effect. CAP also intends to launch a further consultation into scheduling of TV advertisements for payday loans by the end of July. (Source: New Guidance for Payday Loan Advertisements)