Magazine article Marketing

OFT Slams Dailies on Tricky Credit Ads

Magazine article Marketing

OFT Slams Dailies on Tricky Credit Ads

Article excerpt

OFT slams dailies on tricky credit ads

The Director General of the Office of Fair Trading (OFT) Sir Gordon Borrie has blasted national newspaper publishers for their failure to comply with regulation on consumer credit advertising.

In a letter to national press publishers, Borrie says that strict regulations enforced in February to stem the tide of misleading advertising have been ignored.

He says that the OFT, which has noted breaches, will continue to monitor the situation over the next few months and warns publishers who let the guilty ads through will be liable to prosecution.

The first key concern which the February regulations aimed to tackle were ads which did not carry the so called "health warnings" dealing with the threat of repossession of houses under mortgage. The OFT is also concerned about loan ads which fail to make obvious the annual percentage interest rate.

The warning and the genuine interest rate should be the largest messages on consumer credit ads, says the Consumer's Association (CA).

The need for regulation resulted from pressure on the OFT concerning case where "sharp practice" lenders were duping buyers. …

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