Payday Loan Ads Could Be Banned From TV Before 9 PM | Advertising
Payday loan ads could be banned from television before 9 p.m., according to proposals being reviewed by the UK advertising regulator.
The dissemination committee of Advertising Practice (Bcap), the body responsible for drafting the rules for television commercials, is already reviewing the content of payday loan advertisements.
The government has now asked Bcap to expand the scope of its review to examine the scheduling of payday loan announcements and a possible pre-watershed ban.
The extension of the inquiry was revealed by Baroness Jolly, a Liberal Democrat peer, during a Lords session discussing report stage of the consumer rights bill on Wednesday.
“Treasury ministers have asked Bcap to broaden the mandate of its review to ensure that it also considers the relevance of its programming rules, as well as those regarding content,” he added. she said. “The Treasury ministers are writing to Bcap officially to formulate this request. Bcap has accepted this and will expand its review with a view to releasing its findings, in their entirety, in the new year. “
The extension of the review will extend the deadline for publication of Bcap’s investigation into payday loan announcements, which started in june and was due imminently.
The Advertising Standards Authority said it has banned 25 payday loan advertisements since April 2013.
The existing advertising code already prohibits ads for payday loans from encouraging people under the age of 18 to take out a loan or harass others to do it for them. The rules also require that ads be socially responsible.
According to a study by the media regulator Ofcom, children on average see about 1.3 payday loan ads on television per week, out of about 17 hours of weekly television viewing.
According to Ofcom, payday loan ads accounted for a relatively small 0.6% of TV ads seen by children between the ages of four and fifteen.
The Consumer Finance Association, which represents payday lenders making up 60% of UK industry’s billions of pounds a year, and Wonga have an explicit policy of not advertising on children’s television.
“We are delighted to see the government recognize this is a problem,” said Joanna Elson, managing director of Money Advice Trust, the charity that runs the National Debtline.
“On the front lines of debt counseling, we are increasingly concerned that high-cost credit is likely to normalize among young people. Restrictions on advertising payday loans before the turn, on the same basis as those already in place for gambling and alcohol, would be a very welcome step. “
To contact MediaGuardian’s press office, email [email protected] or call 020 3353 3857. For all other inquiries, please call Guardian’s main switchboard on 020 3353 2000. If you write a comment for publication, please clearly indicate “for publication”.