Payday loan ad runs every 78 seconds: TV plugs for high interest loans were viewed 7.5 BILLION times last year
- Ofcom reveals that the number of ads increased from 17,000 in 2008 to 400,000 in 2012
- It would take 138 days to watch all the ads back to back
- Ads were viewed 7.5 billion times last year
- Labor’s Ed Miliband called for ads to be banned on children’s television
Children as young as four see 70 payday loan advertisements on television each year.
In total, ads from companies offering short-term, high-interest loans were viewed nearly 600 million times by children last year, according to the figures.
It comes after a 23-fold increase in the number of such ads in just three years, with 397,000 airing in 2012 – more than half during the day.
Television watchdog Ofcom has revealed how the number of commercials rose from 17,000 in 2008 alone to 400,000 last year, which would take 138 days to watch back-to-back 24 hours a day. .
Ads for people like WOnga (left) and Payday UK have come under fire for normalizing high interest loans
The number of payday loan announcements reached nearly 400,000 in 2012, compared to just 17,000 in 2008
Payday loan companies are accused of specifically targeting the use of daytime television to persuade the unemployed and those raising children to take out loans at more than 5,000 percent APR interest.
Charities and unions have called for a crackdown on ads that “prey” on vulnerable people and even influence very young children.
Labor leader Ed Miliband has called for commercials to be banned completely on children’s television after accusing the companies of creating a “quiet crisis” for thousands of families swamped in debt.
And money expert Martin Lewis has condemned the ads on children’s television as “inappropriate propaganda,” meaning even those under 10 are now harassing their parents to borrow money to buy. toys.
In 2009, there were only 17,000 payday loan ads aired on UK television, registering 12 million views or “impacts” among adults and 3 million children aged 4 to 15.
THE BIG PLAYERS AND THEIR BIG RATES IN A £ 2 BILLION INDUSTRY
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Signing of a four-year contract to sponsor Newcastle United. This month, a Bafta-nominated director was hired to produce a film about the controversial company to counter criticism of its huge profits and sky-high interest rates.
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Controversy courted when she hired bankrupt ex-reality star Kerry Katona to run an ad campaign. But this summer, the Atomic Kitten star filed for bankruptcy for the second time in five years over unpaid debts. Her money troubles caused her to be ditched as the face of Cash Lady.
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Bought by US giant Dollar Financial in 2011 for $ 195 million. He is now part of the same company that owns The Money Shop, which has 550 stores across the country.
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Spent around £ 3.2million on advertising on programs such as Friends, Desperate Scousewives and Hollyoaks. In July, he apologized after sending emails threatening to send debt collectors to people who had not borrowed money.
Last year, the number of announcements climbed to 397,000, with 7.5 billion hits in adults and 596 million in children.
This means that last year every adult saw 152 payday loan ads and 4-15 year olds watched the equivalent of 70 each.
A survey of MoneySavingExpert.com found that a third of parents reported their children under 10 repeating payday lender slogans, while 14% said when they refused to buy a toy, their child had prompted them to take out a payday loan.
Martin Lewis, creator of MoneySavingExpert.com, said: “Ofcom’s research is proof that payday lenders are preparing our children to become the next generation of borrowers, either on purpose or through carelessness in the process. publication of announcements.
“Our research shows that 14% of parents of children under 10 have asked their children for a payday loan when they’ve been turned down for things like toys.
“But the real danger is the normalization of these far from normal loans to the next generation.
“Six weeks ago we called on the government to ban all high cost credit advertising on children’s television.
“The Labor Party took it over and now supports the policy. Today’s research should serve as a bugle for others to follow.
“Mr. Cameron, Mr. Clegg – please, it’s about time you too supported this and made it happen.” “
Ofcom published an audience study on the advertising of payday loans on television.
Payday loans made up only 0.1 percent of all commercials, but that figure rose sharply to 1.2 percent.
More than half of the payday loan announcements aired on daytime television from 9:30 a.m. to 4:59 p.m.
An additional 16% were broadcast between 5 p.m. and 8:59 p.m. and 15% between 11 p.m. and 5:59 a.m., 9% between 6 a.m. and 9:29 a.m. and the remaining 6% between 9 p.m. and 10:59 p.m.
About 1% of all advertisements were shown on children’s television channels.
Citizens Advice CEO Gillian Guy said:
“Payday lenders are shamelessly and irresponsibly using advertisements to attack poorer households in an attempt to take advantage of the cost of living crisis.
“Payday lenders shouldn’t target kids and teens with ads.
“It is deeply concerning that children and adolescents were exposed to three times as many payday loan announcements in 2012 as in 2010.
“More and more ads are appearing on music and TV channels popular with teens and young people as lenders try to attract the next generation of borrowers.
With the targeting of “lenders” to young people and low-income people, comes the industry’s failure to ensure that loans are only given to people who can afford to repay. Citizens Advice found that 61 percent of loans do not have proper checks to ensure the borrower can repay the loan.
One in four payday loan advertisements appear on a music channel and 8% appear on movie channels.
The vast majority – 42 percent – is broadcast on major terrestrial channels.
Last month, Miliband called for a ban on ads during any program aimed at children. He said: “As the father of two young boys, I know how much they can be influenced by what they see.
“And I don’t want payday lenders to take advantage of the cost of living crisis and target children in this country.
“This is wrong, this is not what should be happening and this is why a Labor government would stop them from advertising on children’s television.
“It’s bad for young people, it’s bad for families and it’s bad for communities.”
More than half of all payday loan ads are seen on TV during the day, fearing they may target the unemployed
The Unite union has called for a turn around 9 p.m. for payday loan announcements.
Unite Assistant General Secretary Steve Turner said: “This research paints a horrific picture of a generation of children and young people being dragged into a culture of debt by this bombardment of advertising.
“It’s not just kids who are infected with this payday lending culture. Research has shown that people borrow £ 660 per month just to pay for basic necessities – food, shelter and heat.
“The ASA should give a solid lead by introducing a watershed at 9pm for these payday loans so that children are not swayed by this insidious assault.
“The number of ads should be reduced because the public is fooled into thinking that going into debt is an easy and painless option – quite the contrary.”