Watchdog to keep close eye on loan adverts and comparison sites
It has been revealed recently that an industry watchdog is going to be keeping a closer than usual eye on loan advertisements and financial comparison sites in order to try and provide consumers with increased protection during the recession.
The Advertising Standards Authority plans to keep a close eye on both financial comparison sites and loan advertisements to ensure that consumers are not misled or ripped off, and to ensure that complaints are dealt with properly.
The watchdog said that there are various rulings that have been used to set the standards that advertisers and comparison sites will have to adhere to in order to be compliant.
The ASA has already taken action against firms that have been found to mislead consumers through their advertising or make the process of taking out a secured loan to consolidate debt, such as Picture Financial Services, which had to stop ad advert last year that made light of taking out a secured loan.
After the advertisement was banned the ASA issued a report that read: “The ASA Council found the advert to be misleading for implying that consolidating unsecured loans was a decision that could be taken lightly.”
The number of adverts for financial services has been growing, and the ASA is now looking at adverts that are run on television, radio, and online.
The ASA report also said: “Our priority here is to ensure that ads do not mislead consumers and to help provide a level playing field where companies can make legitimate claims about their products and services.”
The number of complaints relating to adverts and price comparison sites dealing with financial products increased by 14 percent in 2008 compared to the previous year, and the ASA expects this number to rise again over the course of this year.
Related Posts
Highest number of mortgage complaints received by Bank of Scotland
According to figures received from the Financial Ombudsman Service the highest number of complaints in relation to home loans and mortgages has been received by the Bank of Scotland. »
Banks could be named and shamed over PPI complaints
Later this year the Financial Ombudsman Service is set to announce individual figures for banks and financial institutions with regards to the level of complaints each ash received about PPI or Payment Protection Insurance. »
Yes Loans criticised by OFT
The Office of Fair Trading has criticised a loan broker after receiving a series of complaints from unhappy customers. The complaints were made about Yes Loans, and the complaints related to the fact that many consumers were given the impression that YES was a lender and not a broker. »
Brits being hit with rocketing loan interest rates
Since the onset of the global credit crunch consumers in the UK have been affected in many ways, with the cost of borrowing rocketing and with availability of finance in all sectors becoming more restricted and difficult. Many consumers have found that whilst they were able to get finance with relative ease a year or so ago, these days getting a loan or other form of finance is not so easy. Also, many have found that the cost of taking out a loan or other form of finance has gone up.»
Increase in complaints about loan insurance
Official figures that have been released by the Financial Ombudsman Service have shown that the level of complaints relating to loan insurance in the UK have been shooting up. »