The Analysis Editor’s Letter
‘More to be done on adverts’
Stephen Kiely Editor, CCRMagazine
stephen@ccrmagazine.co.uk
The Advertising Standards Authority (ASA) has published two rulings involving commercial debt advice companies, National Direct Service and Fidelitas Group Ltd who made various misleading claims, in paid-for search ads and on their websites, about their services. In summary, it has banned several claims
by both advertisers that: l Exaggerated the speed and ease with which debt can be reduced. l Misleadingly suggested associations with a genuine debt charity (StepChange Debt Charity) or endorsement by the government or other third parties. l Misleadingly suggested that they were qualified to provide debt counselling (including suitability for bankruptcy) or that they did anything more than pass on leads. l Included misleading reviews and rating claims that did not make clear the risks associated with Individual Voluntary Arrangements. The rulings form part of ongoing work
with a range of partner organisations to identify areas of consumer detriment online and to take action against misleading and irresponsible adverts. Miles Lockwood, the ASA’s director of
firms are a positive and welcome development for people struggling with debt, as well as the free debt advice sector which supports these customers. “The ASA decision has come at a crucial
time. This month we anticipate a call about debt every four minutes to the Money Advice Service helpline, and we expect the demand for debt advice to increase over the next 12 to 18 months due to the financial impact of the Covid-19 pandemic. Many people will need support for the first time but also may not know where to begin.” However, despite welcoming the decision,
The Money Advice Trust insisted that more needed to be done. The charity welcomed the decision, but
No-one seeking free help and advice with debt should be hoodwinked by an ad into thinking they are using a genuine debt advice charity when that is not the case
complaints and investigations, said: “The misleading ads by these commercial debt advice firms are unacceptable at any time but given the current economic downturn, with lots of people throughout the UK under significant financial pressure or stress, it is especially important that we tackle ads of this nature wher- ever they appear. “No-one seeking free help and advice with debt should be
hoodwinked by an ad into thinking they are using a genuine debt advice charity when that is not the case. “We welcome the Money and Pensions Service working with us to
identify bad ads in this sector. We have some ongoing investigations involving other commercial debt advice firms, the outcomes of which we will publish soon, and we’ll continue to take action where consumers are being treated unfairly and misled.” Caroline Siarkiewicz, chief executive of the Money and Pensions Service said: “The ASA rulings on the practices of some commercial
February 2021
warned that more needs to be done to tackle the widespread proliferation of misleading adverts online and the risk they pose to people struggling with problem debt especially in the wake of Covid-19. The charity is calling for government
action to tighten up the rules by providing the FCA with the power it needs to take action against firms engaging in this practice online and to ensure search engines do all they can to stop such adverts appearing in the first place.
Jane Tully, director of external affairs, said: “Thiss decision
from the ASA to take action against these lead generation firms is welcome and recognition of the risk these misleading adverts pose to people in debt. “Action like this to stop misleading adverts appearing online is
needed, however as one advert is taken down another often appears. Our concern is that these adverts direct people in need of debt advice down routes that may not be suitable for their circumstances, causing further financial harm down the line. “At a time when the financial impact of Covid-19 continues to be
felt, these adverts pose a serious risk to the longer-term financial recovery of many people in debt. “The government needs to step in and to give the FCA the power
it needs to tackle this issue head on.” Enjoy the magazine!
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