News by email Donate

Suggestions

Top Stories

Most Read

Popular Videos

UK News

Bishops welcome advertising watchdog ban on "misleading" Wonga commercial

The Bishop of Swansea and Brecon and a number of other Lords Spirituals have praised the Advertising Standards Authority for banning a commercial by payday lender Wonga.

The ad, which has now been banned in its "current form" sees two puppets depicting an elderly couple suggesting the cost of a loan isn't as expensive some might expect.

The commercial which has been branded as "misleading" by the ASA states: "Right, we're going to explain the costs of a Wonga short-term loan", "Some people think they will pay thousands of per cent of interest", "They won't of course - that's just the way annual rates are calculated.

Say you borrowed £150 for 18 days, it would cost you £33.49" and "Total cost; it's totally clear."

Large on-screen text displayed throughout the ad stated "AMOUNT OF CREDIT: £150 FOR 18 DAYS. INTEREST: £27.99. INTEREST RATE: 365%PA (FIXED). TRANSMISSION FEE: £5.50. ONE TOTAL REPAYMENT OF: £183.49. REPRESENTATIVE 5853% APR".

At the point that the puppet referred to the cost of the example loan, a third puppet pointed towards text stating "£33.49" that had appeared towards the top of the screen.

Rt Revd John Davies of Swansea and Brecon told Premier's News Hour why he thinks the ad would have lulled vulnerable individuals into borrowing without thinking.

The ASA said it had noted that an amount relating to the total cost of the credit (£33.49) was presented both on screen and in the voice-over and therefore triggered the requirement for the inclusion of the representative example with greater prominence.

Where a representative example was given in an ad, the ASA said it was necessary under regulations to present each element of that example together, with equal prominence, and to accompany the information with the words "representative example".

However, it noted that on this occasion the ad contained a representative example, but did not accompany it with that description, which was a breach of the regulations.

Wonga said it takes the guidance "very seriously", and will continue to work closely and transparently with the ASA to ensure none of our adverts are misleading in any way.

The company said on its website that the advert in question set out to show the "true cost" of a Wonga loan, and explained that no one ever pays "thousands of per cent" in interest.

The lender also claims that it always makes it "totally clear" to customers when they apply for a loan "exactly" how much they will have to pay back and when.

A Monthly Gift Of $11 Makes A World Of Difference

In a world of fake news there’s never been a greater need for quality Christian journalism. Premier’s mission is to provide the Church with the most up to date and relevant news, told from a Christian perspective. But we can’t do it without you.

Unlike many websites we haven't put up a paywall — we want to keep our journalism free at the point of need and as open as we can. Premier’s news output takes a lot of time, money and hard work to produce. No one in the USA is sharing news like we are across radio, magazines and online so please help us to continue that today.

For a monthly gift of $11 or more we’d also be able to send you a free copy of the brand new Premier Bible, a wonderful Anglicised version of the NLT packed with exclusive bonus content, reading plan and resources to help you get the most out of scripture.

Your monthly support will make a world of difference. Thank you.

Support Us
Continue the conversation on our Facebook page

Related Articles

Sign up to our newsletter to stay informed with news from a Christian perspective.

News by email

Connect

Donate

Donate