ASA Adjudications

Money Debt & Credit Ltd
3-5 Rickmansworth Road
Watford
WD18 0GX
Number of complaints: 1
Date:11 April 2007
Media:Television
Sector:Financial
Agency:DTV Group

Ad
A TV ad, for Money Debt & Credit, claimed "Plastic to the limit?  Final demands piling up?  Never ending loans?  Crippling repayments make you feel like theres no end in sight?  Stop!  At Money Debt & Credit, we believe that you could clear your debts for good.  Government legislation lets you write off up to 75% of what you cant afford to pay.  Lower repayments.  Stop creditor hassle.  So if you owe over £10,000, are in full time employment and would like to be debt free, call Money Debt and Credit on 0800 16 999 46 for free advice on how to turn around your finances".

The ad featured a poster that stated "CUT YOUR DEBTS BY 75% CALL TODAY".  On-screen text at various points in the ad stated "An IVA should only be considered in extreme circumstances. It is a formal legal agreement supervised by an insolvency practitioner ... Unaffordable debts written off.  Debt free in 5 years.  Free impartial advice.  Failure to adhere to an IVA could result in bankruptcy. Your credit rating may be affected. Subject to circumstances and acceptance. This includes Scottish Trust Deeds".
Issue
Debt Free Direct Ltd challenged whether the claims:

1.  "Write off up to 75% of what you can't afford to pay" and

2.  "CUT YOUR DEBTS BY 75%"

were misleading and could be substantiated.
BCAP TV Advertising Code: 5.1;5.2.2;5.2.1;5.2.3

Response
The DTV Group replied on behalf of Money Debt & Credit.  They said a small proportion of Money Debt & Credit's clients had agreed Individual Voluntary Arrangements (IVAs) and had been able to write off 75% of their debt.  They did not send evidence in support of that claim.  The DTV Group argued that the voice-over "you could clear your debts ... up to 75% of what you can't afford to pay", combined with the on-screen text "An IVA should only be considered in extreme circumstances ... Subject to circumstances and acceptance", made clear that not all consumers could expect to write off that amount.  They asserted that most customers could write off 75% or more of their debt but that some chose not to, depending on their circumstances.  They said the ad was for free advice and that, if consumers were accepted for an IVA following advice, they would be able to write off part of their debt.

The Broadcast Advertising Clearance Centre (BACC) said the claims were typical of IVA ads and explained that the 75% figure was based on the minimum dividend requirement of 25p in the pound that was enforced by most creditors.  They said the claims were qualified by "could" and "up to" to make clear that not all consumers could expect to write off 75% of their debt.  They argued that advertisers should be able to draw attention to the theoretical maximum amount of debt that could be written off in an IVA, even if very few people could actually do so.
Assessment
Upheld
The ASA noted the comments of the DTV Group and the BACC.  We noted that Money Debt & Credit had based the claims "Write off up to 75% of what you can't afford to pay" and "CUT YOUR DEBTS BY 75%" on a dividend of 25p in the pound and had not taken into account that, when fees were added, debtors would pay a larger amount than the 25% payable to creditors.  We understood that, even taking fees into account, a small number of debtors might still be able to write off 75% of their debt but considered that, because we had not seen evidence that demonstrated a significant proportion of consumers could do so, the ad exaggerated the benefits of an IVA.  We concluded that the ad was misleading.

The ad breached CAP (Broadcast) TV Advertising Standards Code rules 5.1 (Misleading advertising), 5.2.1 (Evidence), 5.2.2 (Implications) and 5.2.3 (Qualifications).
Action
The ad must not be broadcast again in its current form.

Adjudication of the ASA Council (Broadcast)

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