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Advertising watchdog bans payday loan ad

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A TV advert for payday loan company has been banned by the Advertising Standards Authority (ASA) following a complaint from a viewer who challenged whether the representative example and APR rate were “sufficiently prominent.”

Instant Cash Loans, which trades under the Money Shop brand, was accused of not advertising its APR rate clearly enough.

In the advert, a translucent box stated: “Representative example: £100 for only £10 (normally £19.79*). Total amount repayable in a single payment of £110 in 30 days. Interest rate 10% (variable). 219.1% APR representative.”

The text “219.1% APR” appeared larger than the other text.

It was agreed by the ASA that the standard information listing the representative example should have been shown in the same size as the representative APR (RAPR).

The incentive also should have been smaller than the RAPR.

The ASA ruled that the advert had breached the BCAP Code regarding lending of credit and must not be broadcast again in the current format.