A ban on payday loan adverts placed around children's programmes is being considered by the advertising industry's watchdog body for standards.
The Broadcast Committee of Advertising Practice, known as BCAP, has launched a consultation on "whether it is proportionate and necessary to introduce scheduling restrictions on the television advertising of high-cost short-term credit".
Under consideration is a ban along the lines of the one on gambling adverts, which only allows them before the 9pm watershed if they are around sport programmes and is designed to protect those under the age of 18.
An alternative would be to stop adverts around programmes likely to appeal to under-16s, bringing regulations in line with those for food high in fat, salt or sugar.
The other option open to BCAP would be to do nothing at all and rely on its basic rules that adverts must be socially responsible and not cause harm.
It says it has found little robust evidence of advertising-related harm so far, but it wants to consider all relevant information in relation to a restriction.
Payday lenders say that their TV advertising has shrunk considerably since its peak more than two years ago and that they have jettisoned the cartoons and jingles which were criticised for appealing to children.
Wonga relaunched its TV campaign earlier this year, after abandoning adverts featuring elderly puppets, nicknamed the Wongies, which had come under fire.
It said it would not show its new ads on children's TV, or on channels or programmes with a large audience among younger people.
Showing posts with label Wonga. Show all posts
Showing posts with label Wonga. Show all posts
Wednesday, 7 October 2015
Thursday, 4 June 2015
Curb on payday ads
The UK's TV advertising watchdog has warned that payday lenders should exercise care when using "animation, catchy upbeat jingles and humorous themes" in their adverts.
The Broadcast Committee of Advertising Practice or BCAP also warns that the high cost lenders will be breaching its guidelines if they suggest loans are a suitable means of addressing ongoing financial concerns, condone frivolous spending or unacceptably distort the serious nature of payday loan products.
Last year the online lender, Wonga, pulled its TV campaign featuring elderly puppets -- known as the Wongies -- playing music, dancing and in comic poses, on the grounds that the ads might appeal to children.
Recently it launched a new TV campaign showing working people, described as acting responsibly.
The Broadcast Committee of Advertising Practice or BCAP also warns that the high cost lenders will be breaching its guidelines if they suggest loans are a suitable means of addressing ongoing financial concerns, condone frivolous spending or unacceptably distort the serious nature of payday loan products.
Last year the online lender, Wonga, pulled its TV campaign featuring elderly puppets -- known as the Wongies -- playing music, dancing and in comic poses, on the grounds that the ads might appeal to children.
Recently it launched a new TV campaign showing working people, described as acting responsibly.
Thursday, 5 February 2015
No prosecution for Wonga
The payday lender, Wonga, will not be prosecuted over the fake letters affair, when it emerged that customers owing money were sent demands which appeared to be from legal firms but were actually from Wonga itself.
The financial watchdog, the FCA, fined Wonga £2.6m last summer after finding that 45,000 such letters had been sent out. It then referred the matter to the police.
Today the City of London Police issued a statement saying: "The central allegations were that Wonga had deceived its customers by sending letters falsely purporting to be from lawyers with the aim of recovering outstanding debts from customers.
"After a thorough review of all the material gathered the City of London Police has concluded there is not sufficient evidence to progress a criminal investigation. "
The financial watchdog, the FCA, fined Wonga £2.6m last summer after finding that 45,000 such letters had been sent out. It then referred the matter to the police.
Today the City of London Police issued a statement saying: "The central allegations were that Wonga had deceived its customers by sending letters falsely purporting to be from lawyers with the aim of recovering outstanding debts from customers.
"After a thorough review of all the material gathered the City of London Police has concluded there is not sufficient evidence to progress a criminal investigation. "
Friday, 14 November 2014
Wonga off kids' kit
Wonga has announced that it has agreed with Newcastle United to remove its logo from children's kit and training wear.
It said the logo will be removed from all children's replica shirts and training wear from the earliest possible opportunity which, due to kit production schedules, will be from the commencement of the 2016/17 season.
Wonga said the change follows Chairman Andy Haste's commitment, on his appointment in July, to review all the company's marketing to ensure that none of it could inadvertently appeal to the very young or vulnerable.
Wonga has already ended its puppets advertising campaign in the UK.
Newcastle United Managing Director Lee Charnley commented: "We understand and respect Wonga's position and are happy to support their decision."
It said the logo will be removed from all children's replica shirts and training wear from the earliest possible opportunity which, due to kit production schedules, will be from the commencement of the 2016/17 season.
Wonga said the change follows Chairman Andy Haste's commitment, on his appointment in July, to review all the company's marketing to ensure that none of it could inadvertently appeal to the very young or vulnerable.
Wonga has already ended its puppets advertising campaign in the UK.
Newcastle United Managing Director Lee Charnley commented: "We understand and respect Wonga's position and are happy to support their decision."
Friday, 3 October 2014
Wonga rebrand
Wonga has clarified it's position on ditching its name after the brand was tainted by a series of revelations.
Andy Haste, chairman of the payday lender, said overnight: "I wouldn't rule out a name change in the future, but at the moment it's about real, customer-focused change at Wonga that shows we have a role to play in financial services - not a new name"
Wonga announced yesterday that it would write off the debts of 330,000 borrowers who were behind on their repayments.
It had not checked properly whether they could afford the loans.
In June the lender was fined for sending debt collection letters emblazoned with the names of fake legal firms.
Andy Haste, chairman of the payday lender, said overnight: "I wouldn't rule out a name change in the future, but at the moment it's about real, customer-focused change at Wonga that shows we have a role to play in financial services - not a new name"
Wonga announced yesterday that it would write off the debts of 330,000 borrowers who were behind on their repayments.
It had not checked properly whether they could afford the loans.
In June the lender was fined for sending debt collection letters emblazoned with the names of fake legal firms.
Monday, 30 June 2014
Police meeting over Wonga
It has emerged that City of London Police representatives are meeting regulators for discussions about Wonga, the payday lender which is embroiled in controversy over letters sent to customers.
Wonga sent letters from non-existent law firms to customers in arrears between 2008 and 2010.
Last week, the the City regulator the FCA said the company had agreed to pay £2.6m in compensation to about 45,000 customers - an average of about £50 each.
The police then confirmed that they would "be reassessing whether a criminal investigation is now appropriate."
Previously they had ruled it out, saying the case should be left to the regulator.
Today's event -- at the FCA -- is thought to be an initial, exploratory meeting and is unlikely to be followed by announcements on future action.
City of London Police would not comment on the meeting or confirm that it was taking place.
Wonga sent letters from non-existent law firms to customers in arrears between 2008 and 2010.
Last week, the the City regulator the FCA said the company had agreed to pay £2.6m in compensation to about 45,000 customers - an average of about £50 each.
The police then confirmed that they would "be reassessing whether a criminal investigation is now appropriate."
Previously they had ruled it out, saying the case should be left to the regulator.
Today's event -- at the FCA -- is thought to be an initial, exploratory meeting and is unlikely to be followed by announcements on future action.
City of London Police would not comment on the meeting or confirm that it was taking place.
Wednesday, 5 February 2014
Instant checks on payday loans
The danger of desperate borrowers taking out multiple payday loans in a single day should become a thing of the past with the launch of an instant checking service for lenders.
Short term loan providers on the High Street and the internet have faced a barrage of criticism for allowing customers to borrow several times from different lenders over hours or days and build up an unsupportable level of debt.
The credit reference agency, Experian, has announced that it will start a real time data sharing service from the second half of this year.
As soon as one member updates the system with details of a loan, other providers will be able to view the details on their screens, warning them about the customer's new debt.
Previously it could take weeks for the information to be shared.
Another credit reference agency, Callcredit, has already announced a rapid checking service, to be launched in April, which will update every day.
Short term loan providers on the High Street and the internet have faced a barrage of criticism for allowing customers to borrow several times from different lenders over hours or days and build up an unsupportable level of debt.
The credit reference agency, Experian, has announced that it will start a real time data sharing service from the second half of this year.
As soon as one member updates the system with details of a loan, other providers will be able to view the details on their screens, warning them about the customer's new debt.
Previously it could take weeks for the information to be shared.
Another credit reference agency, Callcredit, has already announced a rapid checking service, to be launched in April, which will update every day.
Monday, 17 September 2012
Wonga payday loans soar
Whatever you think about payday lenders, the latest figures from Wonga show how this new method of lending, often over the internet, is catching on.
Wonga's loans quadrupled last year to nearly 2.5 million, despite the fact that it turns down most applications.
And its profits soared at a similar rate, to £46m.
Yet Wonga is just one player, albeit a big one, in a burgeoning industry.
Just to remind you, it lends small amounts, with a £400 maximum, for a few weeks at rates which can be made to look sky high if they are annualised.
The official APR or Annual Percentage Rate which Wonga has to show on its website is 4,214%.
(Wonga "explains" that it doesn't lend for 12 months and , even if it did, the true rate would be more like 360% - though that still sounds like a lot to me.)
So why the success?
People like the convenience and simplicity of payday loans, despite the cost. Many can pay it back easily, others are desperate.
Some are finding it harder to get short-term money elsewhere. Credit card providers and lenders are more choosy.
And new technology, along with the internet, means that the loans can be made available almost instantly - and customers can be assessed ultra-quick.
No business can carry on growing at these rates forever, but there's no sign yet of the payday lending boom coming to an end.
Wonga's loans quadrupled last year to nearly 2.5 million, despite the fact that it turns down most applications.
And its profits soared at a similar rate, to £46m.
Yet Wonga is just one player, albeit a big one, in a burgeoning industry.
Just to remind you, it lends small amounts, with a £400 maximum, for a few weeks at rates which can be made to look sky high if they are annualised.
The official APR or Annual Percentage Rate which Wonga has to show on its website is 4,214%.
(Wonga "explains" that it doesn't lend for 12 months and , even if it did, the true rate would be more like 360% - though that still sounds like a lot to me.)
So why the success?
People like the convenience and simplicity of payday loans, despite the cost. Many can pay it back easily, others are desperate.
Some are finding it harder to get short-term money elsewhere. Credit card providers and lenders are more choosy.
And new technology, along with the internet, means that the loans can be made available almost instantly - and customers can be assessed ultra-quick.
No business can carry on growing at these rates forever, but there's no sign yet of the payday lending boom coming to an end.
Tuesday, 22 May 2012
Wonga gets told off
The Office of Fair Trading has told Wonga off for pressurising people who owed them money by:
*sending letters suggesting they were fraudsters
*telling others over the phone that they shouldn't be borrowing, according to their terms of employment.
In response, Wonga says it will appeal because:
*the letters were sent to a limited number of customers, 18 months ago
*the suspect calls followed a script which hasn't been used since January, 2010.
So they did it, then?
*sending letters suggesting they were fraudsters
*telling others over the phone that they shouldn't be borrowing, according to their terms of employment.
In response, Wonga says it will appeal because:
*the letters were sent to a limited number of customers, 18 months ago
*the suspect calls followed a script which hasn't been used since January, 2010.
So they did it, then?
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