Payday lender ‘comes to its senses’ over puppets in ads

Citizens Advice highlights the risk of using fictional characters to promote high cost loans as the new Chair of Wonga commits to cleaning up the firm’s advertising including dropping the use of puppets.  In March this year, Citizens Advice reported seven payday loan adverts to the Advertising Standards Authority including two from Wonga.

Citizens Advice Chief Executive Gillian Guy said:

“Cartoon characters promoting payday lending send the wrong message to borrowers.  Years of debt are not cuddly or jovial, but instead are tough and distressing.  It is good that one of the biggest payday lenders has come to its senses that fictional characters and adverts during children’s programmes are not an appropriate way to promote high-cost loans.  Hopefully this is a sign that the industry is starting to take responsibility for its behaviour.  

“Citizens Advice has been calling for lenders to be clear and transparent about the loans on offer.  For many people, the picture painted by payday loan adverts is a far cry from the reality of ballooning debts and harsh collection practices.  It is utterly unacceptable for payday lenders to be initiating pester power by running adverts that appeal to children.

“There is a clear demand for short-term credit as people look for money to tide them over or cover unexpected costs because rising prices continue to be out of step with wages. What consumers need are responsible lenders that don’t overload them with loans they can’t afford to pay back.  It’s also important consumers have more choice, and that banks start to look at introducing a responsible micro-loan.”

The Advertising Standards Authority has yet to provide its ruling on the seven payday loan adverts reported by Citizens Advice.

Notes to editors:

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.