Tweet
The ASA considered that the wording of the message, "… spends4u could approve you for a loan of up to £1000 today. No matter what your circumstances" implied the advertiser was willing to accept applications from the text recipients, regardless of their financial situation, and that they could be approved for a loan.
We acknowledged that the message was sent to phone numbers provided by those who had already applied for a similar loan, and so might be interested in the marketing message, and also that they had confirmed that they had a suitable guarantor in place. We noted, however, the message did not refer to the requirement of a guarantor and considered that this was material information, which put into context the statement, "No matter what your circumstances". Recipients were unlikely to be aware that they had received the message solely on the basis of guarantor backing.
We also understood that any lenders to who loan applicants were ultimately referred would have their own approval criteria, depending on individual circumstances. The statement "No matter what your circumstances" implied it was possible to be approved for a loan, without regard to an applicant's situation.
The space for a text message marketing communication was limited and we acknowledged that marketers might find difficulty in delivering their message in a succinct way. However, it was important that, when marketing through text or any other means, the message conveyed was responsible and compliant with all aspects of the advertising Code and other regulations. In this example, although we recognised that there had been an element of targeting involved in the process, we concluded that the content of the message implied recipients could be approved regardless of their situation, which was not the case, and trivialised the lending service offered by encouraging applications for a loan, without due regard for their financial circumstances.
The ad breached CAP Code (Edition 12) rules 1.3 (Responsible Advertising), 3.1 and 3.3 (Misleading advertising).
Action
The ad must not appear again in its current form. We told Sandhurst Associates Ltd to ensure that all material information was included in future messages and to avoid statements that encouraged loan applications without due regard to an individual's financial situation.
Sandhurst Associates Ltd t/a spends4u.co.uk
The Granary
Barton Road
Worsley
Greater Manchester
M28 2EB
http://www.asa.org.uk/Rulings/Adjudi...x#.U9o8WWNYO50
We acknowledged that the message was sent to phone numbers provided by those who had already applied for a similar loan, and so might be interested in the marketing message, and also that they had confirmed that they had a suitable guarantor in place. We noted, however, the message did not refer to the requirement of a guarantor and considered that this was material information, which put into context the statement, "No matter what your circumstances". Recipients were unlikely to be aware that they had received the message solely on the basis of guarantor backing.
We also understood that any lenders to who loan applicants were ultimately referred would have their own approval criteria, depending on individual circumstances. The statement "No matter what your circumstances" implied it was possible to be approved for a loan, without regard to an applicant's situation.
The space for a text message marketing communication was limited and we acknowledged that marketers might find difficulty in delivering their message in a succinct way. However, it was important that, when marketing through text or any other means, the message conveyed was responsible and compliant with all aspects of the advertising Code and other regulations. In this example, although we recognised that there had been an element of targeting involved in the process, we concluded that the content of the message implied recipients could be approved regardless of their situation, which was not the case, and trivialised the lending service offered by encouraging applications for a loan, without due regard for their financial circumstances.
The ad breached CAP Code (Edition 12) rules 1.3 (Responsible Advertising), 3.1 and 3.3 (Misleading advertising).
Action
The ad must not appear again in its current form. We told Sandhurst Associates Ltd to ensure that all material information was included in future messages and to avoid statements that encouraged loan applications without due regard to an individual's financial situation.
Sandhurst Associates Ltd t/a spends4u.co.uk
The Granary
Barton Road
Worsley
Greater Manchester
M28 2EB
http://www.asa.org.uk/Rulings/Adjudi...x#.U9o8WWNYO50
Comment