The Broadcast Committee of Advertising Practice (Bcap), which sets the code of conduct for TV advertising is considering placing restrictions on payday loan advertising.
Bcap said it has begun a consultation process on whether payday loan adverts should have “scheduling restrictions”.
The committee said they don’t believe any restriction would lead to a loss in revenue for broadcasters.
It’s considering whether payday loan companies should be banned from advertising during programs primarily viewed by four- to 15-year-olds or 10- to 15-year-olds.
Although Bcap have said they aren’t yet convinced restrictions will be required,
“WE BELIEVE THAT THERE ARE GAPS AND INADEQUACIES IN THE EVIDENCE BASE WE HAVE SEEN. PARTICULARLY, THAT THE PRECISE HARM THAT SCHEDULING RESTRICTION MIGHT HELP TO PREVENT HAS NOT BEEN ARTICULATED.”
Dangers of Payday Loan Adverts
The concern over payday loan advertising has come due to a number of reviews by Bcap and Children’s Society last year.
Children’s Society, chief executive, Matthew Reed said:
“WE ARE PLEASED THAT REGULATORS APPEAR TO BE LISTENING TO THE MANY PARENTS WHO SHARE OUR CONCERNS ABOUT THE DAMAGING IMPACT OF ADVERTS FOR HIGH-INTEREST LOANS ON THEIR CHILDREN,”
The concern is that children, who aren’t yet old enough to understand the dangerous of payday loans, will grow-up influenced by the adverts.
However according to Ofcom payday loan adverts only account for 0.6% of all commerciasl seen by 4 to 15 year olds. Although the media regulator also found children see 1.3 payday loan adverts per week.
Dealing With Payday Loan Debt
Payday loan debts can be more difficult to resolve because of the interest and charges which are added when a borrower defaults.
Someone with a payday loan debt should seek debt advice quickly, ideally before they default, to help find a solution.
If you or someone you know is struggling with payday loan debts, contact Debt Support Trust 0800 085 0226 or complete our debt analyser.