This comes after Kerry Katona was recently axed by Cash Lady as their spokesperson after filing for bankruptcy for the second time in five years. Cash Lady has been criticised in the past for suggesting that their loans could be used to fund a celebrity lifestyle.
There are fears that lenders are still using celebrities to advertise their high interest loans. Many payday loan companies appear to target those on benefits by advertising on daytime television at a time when benefits are changing. It is feared that those who are badly affected by changes to the benefit system may resort to using payday loans. This will most likely make their financial situation much worse.
Beverley Budsworth, Managing Director of The Debt Advisor said:
“The way that the payday lending industry advertises has rightly in my view, been referred to the Competition Commission. Whether it is using celebrities or little old ladies, the advertising needs not to mislead and also adequately highlight the risks of taking out these very high interest loans.”
