Jan 24, 2014 Simon Williams
As so many people across the United Kingdom know, short term lenders can be very helpful if their products are used right. Ever since the height of the global recession a few years ago, individuals have been using these alternative finance options to stay afloat during tough times.
However, not everyone in the nation feels the same way about these types of loans. Some lawmakers assume that this means of securing credit can actually cause individuals to fall deeper into debt. But what they may not know is that legitimate companies always go the extra mile to not only make sure they're approving the applications of people who need money for legitimate reasons, but they also tend to provide advice or materials on best practices.
One focal area that individuals who don't support short term lenders have been harping on is advertisements. They've largely been nit-picking different elements of ads and banning promotions left and right.
Lender's advertisements taken off TV
Consider the recent issues with Loans 2 Go. According to The Daily Mail, the company's recent ads were banned because the Advertising Standards Authority (ASA) deemed they were too light-hearted and "socially irresponsible."
The source reported that the ASA said there was a celebratory atmosphere to the commercials, and taking out a loan is too serious for this. This ruling seems a little frivolous - the relief people feel when they take out a short term loan can be cause for celebration at times. If individuals have no other option when it comes to paying bills, and then they're virtually handed cash, why wouldn't they be happy? While it's definitely true that these products can sell themselves, businesses have to produce ads that will catch peoples' eyes. How else would consumers know such options exist?
What can companies do to remedy the situation?
When promotions are yanked off the airwaves, this can not only adversely affect the business itself, but also consumers. What if members of the public aren't aware of their alternative credit options and have to allow bills to go unpaid? This could have very bad results - consumer credit may take a dip for years and years. This way, people know their options and can make sure they stay current on their accounts.
Lenders need to make sure they're both advertising correctly and not giving critics any reason to take aim. However, they should also not be afraid to speak up if they think they're justified in these actions. Educating lawmakers and consumers alike on the true nature of smaller loans might be the way to go.