Consumers want payday loan ads kept away from the box
Over recent years a rising number of payday lenders seems to have erupted onto the financial markets, with many enticing hard up consumers with the promise of fast, easy cash with no need for a credit check.
These lenders offer small, short term loans to tide people over until payday. However, controversy has arisen over the loans because of the crippling APR that most charged, which can amount to over 2000 percent in some cases.
As these companies have become more and more prevalent in the financial sector, advertisements have started to spring up all over the place. Whether you are watching TV, listening to the radio or even reading print media in some cases, you will come across one advertisement after another from payday lenders trying to convince you to take out a payday loan to pay unexpected bills, deal with financial emergencies, or simply put more money in your pocket until payday.
Worryingly, in the current financial climate, a rising number of people with poor credit have fallen for these loans, which has resulted in many getting into spiralling debt that they are unable to cope with. This has prompted calls for further regulation and for measures to be taken to reduce the risk of desperate consumers falling into a debt trap. However, with all the marketing and advertising that the firms use, many are enticed into taking out these loans.
A recent survey was carried out amongst consumers to see how many thought that these payday loan advertisements should be banned from TV. The results showed that a massive 75 percent of consumers were keen to see these advertisement taken off the TV, reflecting what consumers think about the loans in addition to the concerns that have been highlighted by officials.
11th Feb 2012