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Payday loan TV advertising ban bid rejected

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By John Glenday, Reporter

March 25, 2014 | 1 min read

Moves to ban payday loan firms from advertising on daytime television and children’s TV shows have been rejected by the government – although it will move to impose a cap on interest and other costs imposed by such providers.

Instead commercials will be subject to greater restrictions, including the incorporation of details of debt service advice and explicit warnings of the consequences of failing to pay back loans on time – such as the high rates of interest liable and the impact on credit ratings.

In a statement the Business Select Committee said: “The increase reported by Ofcom in the number of payday lending ads seen by children is concerning, but it is also important to note that they comprise a relatively small 0.6 per cent of TV ads seen by children.”

The Financial Conduct Authority is currently consulting on the type of information to be included in such adverts.

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