Payday loan companies could face outright advertising ban
Payday loan companies could be hit with an advertising ban similar to that of cigarette companies it has emerged following a Whitehall summit involving the Financial Conduct Authority.
The sector is set to face tougher regulation when the FCA takes over control next April, with additional restrictions to advertising and marketing expected to be put in place, with one option apparently including an outright ban on advertising.
"If payday loan companies are genuinely targeting a particular income bracket- people with jobs - why do they advertise on daytime television," Martin Wheatley, CEO of the FCA told the BBC.
"It's clear the industry must not wait for new rules to come in and must clean up its act without delay," he added.
Last week, the Office of Fair Trading referred the payday loan sector to the Competition Commissionhaving written to 50 companies as a result of concerns of "deep rooted problems".