A new rash of ads appearing on popular social networking sites are being targeted as misleading by several consumer action agencies. The new ads are being called deceptive and many fear that they are hooking consumers with high promises of cheap unsecured loans and then failing to deliver. In some cases, the ads for cheap unsecured loans violate UK law. Experts are encouraging consumers to be cautious about responding to any online ads that appear too good to be true. In the meantime, several of these agencies are mounting a campaign to get the ads pulled before they can do any more damage.”Lots of credit companies, especially payday and logbook loans companies, are using the medium [social networking] to advertise their products. It is such a popular method because they can target young people with whom the site is so popular,” commented Credit Action, a charity set up to protect consumers.Malcolm Hurlston Chairman of Credit Action’s board of trustees, explained that while some adverts do include the rates of APR “they are only in the frequently asked questions section, and not prominently on the advert, which is what the rules require”.
Related reading: Cheap Unsecured Loan
Comment on this article