The BCAP Executive has drawn up new guidance based on past Advertising Standards Authority rulings which is intended to assist with the interpretation of the rules in the CAP and BCAP codes (the ‘Guidance’). It follows the Payday Lending Review carried out by BCAP in 2014.

The Guidance focuses on the CAP and BCAP rules which require communications to be prepared with a sense of responsibility to consumers and to society. The Guidance confirms that the rules will be breached if adverts:

  • Suggest that high-cost short-term (HCST) loans are a wider solution to financial management, or a way of addressing ongoing financial concerns.
  • Promote HCST credit as a way to fund non-essential purchases (such as holidays, shopping trips, weekends away etc.) or encourage frivolous spending.
  • Include factors which have the potential to distract viewers from the seriousness of the decision to apply for a loan. This may include the use of an animation, songs, light-hearted and humorous tone or catchy/upbeat jingles.

The guidance can be read in full here.