UK loans company Charles Price has agreed to change its credit advertising following action by the Office of Fair Trading.
A credit advert for the Cheshire-based company, which appeared in a national newspaper earlier this year, was found to be in breach of the Consumer Credit (Advertisement) Regulations (CCARs). The CCARs are designed to ensure that advertising is truthful, transparent and provides the consumer with a balanced picture of the product.
The advert offered loans of up to GBP75,000 secured against consumers’ homes.
The Office of Fair Trading (OFT) found that the advert failed to give the typical APR greater prominence than the statements quick loans no fees, which is an incentive for the consumer to apply for credit, and bad credit history, which indicates that credit is available to consumers who might otherwise consider their access restricted.
The OFT also said that the advert failed to provide required security warnings.
Charles Price voluntarily withdrew its advertising after being contacted by the OFT and has given undertakings under the Enterprise Act that it will not breach the CCARs in the future.