WiredGov Newswire (news from other organisations)
 Printable version
|
 E-mail this to a friend
|
CAB - Ban on Kerry Katona payday loan advert is good news
Adverts glamorising payday loans are a far cry away from the reality of debt, according to Citizens Advice as the Advertising Standards Authority bans Cash Lady advert featuring Kerry Katona.
Citizens Advice Chief Executive Gillian Guy said:
“I’m pleased the celebrity-fronted Cash Lady advert has been banned. People have their lives turned upside down at the hands of payday lenders and adverts that glamorise the loans are a far cry away from the reality of debt.
“Payday lenders are giving out loans without knowing anything about the borrowers financial situation. New evidence from Citizens Advice found 65% of lenders do not check if borrowers can afford to pay back the loan and many don’t offer to freeze interest or charges if people are struggling to keep up repayments. It’s about time lenders proved their promise to treat people fairly is more than just rhetoric.”
New figures, released by Citizens Advice on 5 May 2013 found that 65% of people did not get asked about their financial situation – leading to 7 in 10 not being able to pay back the payday loan.
Customers who weren’t asked affordability questions and had repayment problems were further let down by lenders as:
- 6 in 7 did not offer to freeze interest and charges when the borrower agreed repayments;
- 71% did not explain how much it will cost to extend the loan;
- 84% did not treat people sympathetically.
Notes to editors
- The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, 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 information in England and Wales see www.citizensadvice.org.uk
- 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. For online advice and information see www.adviceguide.org.uk
- Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.9 million problems from April 2011 to March 2012. For full 2011/2012 service statistics see our quarterly publication Advice trends
- Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable (nfpSynergy’s Brand Attributes survey, May 2010).
- Most Citizens Advice service staff are trained volunteers, working at around 3,500 service outlets across England and Wales.
.gif)
