Cash Lady’s payday loan ad presented by Kerry Katona banned for being irresponsible

Kerry Katona’s ‘irresponsible’ payday loan ad banned for encouraging debt to fund celebrity lifestyle

A television advertising campaign for payday loans led by former bankrupt Kerry Katona has been banned for irresponsibly suggesting that debt could help fund a celebrity lifestyle.

The former pop singer and reality TV star, who was declared bankrupt in 2008 for unpaid taxes, referred to her “money problems” in the Cash Lady commercial.

In the ad, she said: “We’ve all had money issues at some point, I know I have. You can see your bank and fill out a lot of forms, but is there an easier way to get a loan … So if you need the extra cash go to www.cashlady.co. uk. Fast cash for fast lives.

Money issues: The Advertising Standards Authority banned the Cash Lady ad, presented by Kerry Katona, for being irresponsible.

PDB UK Ltd, which operates as Cash Lady, offers loans of up to £ 300 per month with an annual percentage rate of 2,760%.

Payday loans are designed to provide a short-term solution to financial difficulties as a last resort – however, charities have warned that they trap clients in a spiral of debt.

The ad drew 29 complaints and the Advertising Standards Authority (ASA) said it was irresponsible because it focused on Katona’s financial problems and encouraged people in similar situations to borrow money.

He said the ad made “no reference to the fact that these loans were intended for short-term interruptions between pay days and were not intended as a more immediate solution to more serious financial problems.”

Cash Lady said Katona was chosen as the “face” because she had had money issues in the past and their clients could relate to her.

He said his loans were capped at £ 300 and were therefore intended for those facing relatively low short-term financial difficulties who need to bridge a gap between paydays.

Banned: The ASA has said the announcement should no longer be shown in its current form.

However, the ASA said references to Katona’s financial problems in the ad “have the potential to encourage vulnerable viewers with financial problems and / or limited credit to seek resolution through the payday loan service. “and concluded that the advertising was therefore irresponsible.

He said some viewers with limited credit may have found the product in the ad particularly appealing due to their identification with Katona and references to his own past financial issues.

The ASA also found that the RPA was no more important than the other information that triggered its demand in the ad, violating the code.

He ruled: “The ad should not appear in its current form. We asked Cash Lady to ensure the overall presentation of information on its loans.

Money Matters: Kerry Katona arrives as a guest at the Celebrity Big Brother House at Elstree Studios in August 2011.

Money Matters: Kerry Katona arrives as a guest at the Celebrity Big Brother House at Elstree Studios in August 2011.

When the campaign was launched earlier this year, Labor MP Stella Creasy said it was ‘sad’ to see someone who has experienced the ‘misery’ of debt firsthand advertise a business which she said charged an interest rate of 2,670 percent.

Creasy, who had long campaigned against payday loan companies, said at the time: “Behind the glittering celebrity endorsement the thing Kerry doesn’t say is that this company charges a rate. interest of 2670 percent.

“It’s no wonder that with rates like these, so many women are having trouble borrowing from payday lenders, with debt charities reporting an increase in the number of people asking them for money. aid.

“That’s why it’s sad to see someone who knows firsthand the misery of being in debt encouraging others to use legal loan sharks instead of credit unions when they need a loan.

“Names of households that see short-term cash increases for their own bank balances advertising these businesses risk promoting businesses that are hurting the finances of millions of UK families in the long run.

“That’s why we need to act now to cap what these companies can charge to help women struggling to make ends meet in 2013.”

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