ASA Adjudication on Abbey National plc

Ad

An ad for an Abbey National bank account showed a man turning a light off and leaving a living room while a box of Scalectrix was left lying on the floor. A miniature Lewis Hamilton and Formula One crew emerged from the box and began to assemble the Scalectrix track while the voice-over said "Together we are stronger. With 90 million customers and a prudent approach to banking, Santander is one the world's strongest and safest banks". As Lewis speed off in a car on the track, on-screen text at the bottom of the screen stated "6% AER (fixed), 5.8% gross on balances up to £2500 for 12 months when you credit £1000 monthly. Rate then reverts to 1% AER (variable) on balances up to £2500. Conditions apply". While the text was on screen the voice-over continued "Abbey is part of Santander and you can be too by opening an Abbey bank account with an impressive 6% interest rate fixed for 12 months". The ad ended with the voice-over "Visit your local Abbey branch. Similar great bank accounts at Alliance and Leicester. We are Santander".

Issue

Two viewers objected that the ad was misleading and challenged whether:

1.  the conditions of the 6% interest payment offer were made clear, and

2.  6% AER was an accurate calculation.

BCAP TV Code

Response

1. Abbey National plc (Abbey) stated that the lead rate of 6% AER was the rate that customers would receive on adhering to the terms and conditions of this account.  They said that the on-screen text clearly detailed all of the significant terms and conditions and that the ad did not refer to the 6% AER without these conditions being visible.   

They explained that the 0.1% AER (the rate to which the interest dropped on months where the £1000 payment was not made) was not detailed in the ad because it was not a piece of information needed by a viewer in order to make an assessment on the desirability or otherwise of the product.  They said viewers would appreciate that the 6% AER rate was only achievable if they met the conditions stated and that a different AER would apply if they did not.   They stated that branch posters, leaflets and other supporting documentation gave customers fuller details of the bank account.

2.  They said that any customer who met the conditions of the account would receive 6% interest on the first £2,500 in the account and reasoned that it was not misleading to refer to this as a 6% AER.  The added that the conditions of this rate of interest were clearly detailed and viewers would be aware that it only applied to the first £2,500 and not the remaining balance.  They said that it should be noted that it was a bank account that was being advertised, and not a savings account and that interest rates on the full balance would not generally be expected. They explained that Lloyds TSB and Halifax had similar accounts.

Clearcast said that the on-screen text clearly stated that the 6% AER applied to any balance up to £2,500 for 12 months when the account was credited monthly with £1,000.  They said that a viewer would know that if they did not pay in £1,000 a month, they would not receive the full 6%.  They explained that the conditions of the offer were clearly stated that it was not misleading to refer to the AER as 6%.

Assessment

1. Not upheld

The ASA noted the voice-over made clear that the 6% AER only applied to the first 12 months of opening an account. We also noted the other significant conditions were included in on-screen text that remained on-screen for 14 seconds.   We considered the conditions of the 6% interest payment offer were made sufficiently clear in the voice-over and on-screen text and concluded that the ad was unlikely to mislead.   

On this point, we investigated the ad under CAP (Broadcast) TV Advertising Standards Code rules 5.1.1 (Misleading advertising), 5.1.2 (Misleading - omission) and 5.2.1 (Evidence) but did not find it in breach.

2. Not upheld

We understood that 6% was an accurate description of the AER because interest rates could be calculated based on fixed or accumulating sums (or both) and customers would receive 6% on balances up to £2,500 provided that they adhered to the terms and conditions of the account.  We concluded that the reference to 6% AER was unlikely to mislead.

On this point, we investigated the ad under CAP (Broadcast) TV Advertising Standards Code rules 5.1.1 (Misleading advertising), 5.1.2 (Misleading - omission) and 5.2.1 (Evidence) but did not find it in breach.

Action

No further action required.

Adjudication of the ASA Council (Broadcast)