May 16, 2014 / 8:58 AM / 4 years ago

BRIEF-FCA says consumer credit firms must raise advertising standards

May 16 (Reuters) - Financial Conduct Authority (FCA)

* Consumer credit firms must raise advertising standards, says fca

* Examined over 500 advertisements for a range of consumer credit products after assuming responsibility for sector on 1st April 2014

* FCA found examples where consumers were encouraged to hit ‘apply’ button for a product before having a chance to access important information, a tactic which is against its rules.

* Statistics show that one in five adverts from consumer credit firms, for products including payday loans, fell short of FCA’s financial promotion expectations

* Will be working with firms to help them comply with rules and improve standards to benefit of consumers

* Although most firms were quick to make changes once shortcomings were pointed out

* Will continue to monitor these promotions and will be working with firms to help them comply with rules and improve standards to benefit of consumers

* The FCA also acts on complaints received from public and via advertising standards authority.

* In total, 108 promotions were identified as not meeting rules with examples of poor advertising across all mediums including print, online, in-store and direct mail

* Of 108, 75 firms have responded, all of whom have amended or withdrawn multiple promotions. Remaining firms are in process of responding

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