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BCAP Payday Loans Review

25 June 2014

BCAP is launching a review of how the advertising rules are being applied to payday loan advertising appearing on TV to ensure that young people, in particular, continue to be protected.

Payday loan advertising has attracted concern across society, including Government, media, consumer protection bodies and the public as the use of short-term, high-cost credit has increased during the economic downturn.

In December 2013 a Business, Innovation and Skills Select Committee report highlighted concerns around the scheduling of payday loan advertisements on television, including the nature and style of those ads.  It recommended that payday loan ads be banned from appearing during programmes aimed at children. Alongside this, there continue to be high-profile calls for further regulation of payday loan advertisements, including for a 9pm TV watershed.  

In October 2013 the Committee of Advertising Practice (CAP) published updated guidance for payday loan advertisers on what they need to do to ensure that their ads are socially responsible.  Furthermore, from 1 July 2014, financial promotions for payday loans will be required to include a Financial Conduct Authority (FCA) risk warning.

In the context of the concerns that surround payday loans advertising, BCAP considers that in addition to the measures already taken it is timely to review how the advertising rules are being applied to payday loan advertising appearing on TV - in line with our ongoing commitment to ensure that the Code provides adequate protection for consumers and vulnerable groups - to ensure that young people, in particular, continue to be protected.

Accordingly, we have published terms of reference, which set out the scope and approach of the review.

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