Picture Financial Services plc Picture House Imperial Way Newport NP10 8UH Number of complaints: 6

Date: 10 October 2007 Media: Television Sector: Financial Agency: Watson Phillips Norman

Ad
A TV ad, for personal loans, showed a woman in her kitchen arranging a loan over the phone.  She was interrupted several times by family members.   She said "Hi Picture? I was calling about a loan.  Yes we do have a mortgage".  A boy's voice shouted from the garden "Mum, where's my scooter", the woman replied "Try the garage".  A voice-over stated "You could rearrange your credit into one, easily affordable loan so you can keep track of your money".  A man walked into the room and interrupted the woman, she said "I'm on the phone to Picture" then to the phone "Don't worry its always like this here.  But at least I can get my credit sorted.  We'd like to borrow £25,000".  A girl's voice from upstairs shouted "Mum, I can't find my trainers".  She replied "They're under the bed" then said to the phone "how much would that be?  Really?  That's a lot less than we're paying now.  And what do I need to do? ... So that's all there is to it? Great". On-screen text stated "Loans secured on your home ... subject to status ... Borrow £10,000 to £100,000 ... Approved in principle over the phone".  A freephone number was displayed on-screen throughout the ad.


Issue
Viewers complained that the ad was misleading, because it portrayed borrowing large amounts of money as an everyday occurrence that could be treated lightly.

BCAP TV Advertising Code:

5.1

Response
Picture Financial Services (Picture) said they did not view any kind of credit agreement as something to be entered into lightly and they did not want to suggest that in their advertising.  They said, however, that they wanted consumers to feel comfortable discussing their borrowing needs with their trained consultants.  They said the ad sought to illustrate, in a light-hearted way, the busy lifestyle and conflicting demands many of their customers faced each day, which made it difficult to sort out things like finances.  

Picture said they did not lend money to people in financial difficulty or to financially vulnerable consumers.  They said all applicants were thoroughly checked to ensure the borrower could comfortably afford the repayments.  They also tried to ensure customers understood the commitment they were making when they took out the loan.  They said many of their customers borrowed £25,000 or more to consolidate other more expensive credit but that did not mean that they were struggling to meet their repayments.  They said many consumers who used credit were not in financial difficulties but could benefit from reorganising their borrowing into one loan with a lower interest rate and/or a longer repayment period.

The Broadcast Advertising Clearance Centre (BACC) said that although the ad illustrated the ease with which borrowing requirements could be discussed over the phone during a busy day, it was not misleading and did not suggest that borrowing large sums of money was to be taken lightly.  They believed the scenario portrayed in the ad was responsible; it was about rearranging and consolidating debt to reduce outgoings.  They pointed out that the ad contained several warnings to make the nature of the service clear, for example "loans arranged in principle over the phone".  

Assessment
Upheld
The ASA noted the ad included several warning statements about the nature of the service and also highlighted the typical APR, the monthly repayment amounts, the length of repayments and the total amount repayable on a £25,000 loan.  

We noted Picture had intended to depict the ease with which borrowing requirements could be discussed over the phone with them, even during the course of a busy day.  However, we considered that consolidating unsecured loans into one loan, particularly one secured on a home, was a serious step that needed careful consideration.  We considered that the light hearted tone of the ad, including the interruptions from family members, suggested that the decision to take out the loan had not been carefully considered and that it was an everyday occurrence.    We concluded that the ad was likely to mislead.

The ad breached CAP (Broadcast) TV Advertising Standards Code rule 5.1 (Misleading advertising).

Action
The ad must not be broadcast in its current form.


Adjudication of the ASA Council (Broadcast)