Gov Ok with Kids PDL Ads

[EXC]

Oh great.

In response to calls for a ban on Pay Day loan advertising on kids TV the Government has decided to continue to allow it, which in my view will instill into the next generation and all those thereafter that pay day loans are just fine and dandy.

BBC report
http://www.bbc.co.uk/news/business-26719170


Government response
http://www.publications.parliament.u...136/113604.htm

[Amethyst]

Re: Gov Ok with Kids PDL Ads

This part:-

Advertising

We welcome the FCA's proposals to require all payday adverts to include both a "health warning", and directions to debt advice services. We recommend that these warnings be subject to the same requirements for prominence as APRs and that the "health warning" should be repeated at every stage of the application process. (Paragraph 64)

The Government welcomes the FCA's proposals that all payday lending adverts should carry a risk warning and should signpost to debt advice.

Research suggests that payday lending consumers consider product features such as speed, flexibility and availability of credit to be more important than cost. As a result, providing more information about price may not be the most effective way to better inform consumers of the risks of borrowing from payday lenders, or prevent irresponsible borrowing.

The FCA have therefore proposed a risk warning that is targeted at consumers who could under-estimate the risks and costs associated with not paying back a loan on time, and those consumers that would benefit from impartial debt advice.

It is worth noting that, as the Consumer Credit Directive (CCD) is a maximum harmonisation measure, it is not open to the FCA to make certain rules over and above that prescribed by the CCD. In response to recommendations from the Public Accounts Committee last year, the UK Government raised issues around the relative prominence of different cost of credit measures with the EU Commission as part of its ongoing work to review CCD implementation.

We further recommend that the FCA include the warning that the use of payday loans could affect an individual's credit rating for other financial products, including mortgage applications, should evidence support that position. (Paragraph 65)

It is important to note that credit risk models and approaches vary between lenders; so while a history of taking out payday loans may prevent a borrower taking out a loan with one lender, others may take a different approach.

Research undertaken by Ofcom has shown that payday loan advertising is prevalent on daytime television and children's channels. We do not believe that these are appropriate channels for payday loans. We recommend that payday loan adverts are banned from programming aimed at children. (Paragraph 66)

Payday loan adverts are subject to the Advertising Standards Authority's strict content rules. The ASA will not hesitate to ban irresponsible adverts, and has a strong track record of doing so, including recent Wonga and Peachy adverts.

The increase reported by Ofcom in the number of payday lending ads seen by children is concerning, but it is also important to note that they comprise a relatively small 0.6% of TV ads seen by children aged 4-15. The Broadcast Committee of Advertising Practice (BCAP), the body that writes the Broadcast Advertising Code, is considering the extent to which payday loan advertising features on children's TV and whether there are any implications for the ASA's regulation of this sector.

Separately, the Financial Conduct Authority has consulted on new rules for consumer credit adverts, including proposals to introduce mandatory risk warnings and signposting to debt advice. It has powers to ban misleading adverts which breach its rules.

[Amethyst]

Re: Gov Ok with Kids PDL Ads

Rightio it is the FINANCIAL CONDUCT AUTHORITY RESPONSE;

Government response:
Research undertaken by Ofcom has shown that payday loan adverting is prevalent on daytime television and children's channels. We do not believe that these are appropriate channels for payday loans. We recommend that payday loan adverts are banned from programming aimed at children. (Paragraph 66)


FCA Response:
We are not best placed to ban advertising on children's or daytime television.

Any ban on adverts for high-cost short-term credit would need to comply with Article 10 of the European Convention on Human Rights which extends to commercial advertising by firms. Article 10 sets out the right to freedom of expression.

The article states that any restriction would need to be prescribed by law, necessary in a democratic society so that it is proportionate, and in pursuit of national security, territorial integrity or public safety, prevention of disorder or crime, the protection of health or morals, protection of the reputation or rights of others, prevention of the disclosure of information received in confidence, or maintaining the authority and impartiality of the judiciary.

Our financial promotions supervision team will be focused on using the powers and resources available to us to ensure that adverts are clear, fair and not misleading. All Consumer Credit firms will have to comply with our rules on financial promotions.


.........................


NB. The Committee published its Seventh Report of Session 2013-14, Payday Loans, on 20 December 2013. The Government's Response was received on 19 February 2014 and is appended to this Report at Appendix 1. The Financial Conduct Authority's Response was received on 28 February 2014 and is appended to this Report at Appendix 2. or http://www.publications.parliament.u...136/113605.htm in other words.

[Amethyst]

Re: Gov Ok with Kids PDL Ads

So basically the Government said YES to banning ads on Kids TV and the FCA said they aren't best placed to do it and any ban would have to fit with Article 10.

So the ''Government'' agree with a ban, and the FCA do too but warn that the FCA aren't in the position to do it and that care needs taking on a ban and advice should be taken with regards human rights/freedom of expression so for now will just enforce their rules on fair, clear etc and the ASA will kybosh any dodgy adverts.

Little different to how the BBC story makes it sound, but not massively

[enquirer]

Re: Gov Ok with Kids PDL Ads

Sounds like the usual twistery.

"We'd like to ban it, but we're not really in a position to do so, although we're monitoring the situation ...".

Business as usual, then.

[enaid]

Re: Gov Ok with Kids PDL Ads

Bet these folks don't watch the ads now, on kids tv or wherever
Tonight Channel 5 at 9


When Debra from County Durham borrowed £500 from a ruthless loan shark for a computer, she had no idea that it would turn into a ten-year nightmare that would end up costing her a staggering £88,000 as well as her home.
Justyn was a city boy who seemed to have the perfect life, but he had secret debts of £70,000 which eventually cost him his career and his family. Single mum Candice used to be such a reckless spender that she moved house four times to try to dodge the bailiffs. Having faced up to her debts, she is now desperately trying to rebuild her life.
Bryan, on the other hand, is unrepentant. He built up £42,000worth of debt, despite being on benefits for 14 years, and has no intention of paying anything back. He blames the banks for lending him the money.

http://www.channel5.com/shows/my-spiral-into-debt-hell/

[Amethyst]

Re: Gov Ok with Kids PDL Ads

Uggghhhh I really have gone off channel5

''Bryan, on the other hand, is unrepentant. He built up £42,000worth of debt, despite being on benefits for 14 years, and has no intention of paying anything back. He blames the banks for lending him the money.''

Is just inflammatory and unnecessary - as pointed out by Mike Thomas, I think, during the debt debate last week, Byan took the loans out of desperation while struggling after losing his job due to onset of MS ( see http://www.mirror.co.uk/news/uk-news...nefits-3272931 just because I can't see it in that light elsewhere ) and the banks were entirely irresponsible in lending to him.

£5,000 on two credit cards
£15,000 on bank loan
£5,000 on further bank loan
£9,000 interest payments on credit cards and loans
£8,000 backlog on energy and water bills

And he currently only owes £20k.

[enaid]

Re: Gov Ok with Kids PDL Ads

I agree about the ones who are intent on not repaying the loans, I have to say though I do not think it's just as simple as it's set out.
Like I said on the DMP thread people who do try and repay are treated that badly or are given very little chance to pay off things fairly they may well say 'sod it' and have to say in some cases I have seen so would I.