Credit firms need to do more to ensure their adverts and promotions do not mislead potential customers, says the FCA. The organisation examined over 500 advertisements for a range of consumer credit products and found a number of examples where key information which should have been included in the advertisement was either missing or difficult to find.
The findings came as no surprise to ourselves, in fact we would have expected a slightly higher number. When looking at promotional materials from across the home improvement sector, we’ve typically found around 75 percent lack some information that’s stipulated to be included by the Consumer Credit (Advertising) Regulations.
Clive Adamson, director of supervision at the FCA, said, “It is particularly important in this sector that advertisements for financial products enable customers to make informed decisions. We think that more can be done to ensure that advertisements are fair, clear and not misleading.
“Firms have responded well when challenged about ads which have not met the standards. We will continue to work with firms and monitor their performance in this area to ensure the high standards we are looking for are met.”
In total, 108 promotions were identified as not meeting the rules with examples of poor advertising across all mediums including print, online, in-store and direct mail. Of the 108, 75 firms have responded, all of whom have amended or withdrawn multiple promotions. The remaining firms are in the process of responding.
The FCA also acts on complaints received from the public and via the Advertising Standards Authority.
If you’re unsure if your advertising, website or other promotional material complies with regulations, then please contact CCS Head Office on 0845 120 6666 or speak to your Business Development Manager.
You can read the FCA’s press release by visiting its website: www.fca.org.uk