Advertisements For Loans And Credit

Low-cost finance - special deals', 'preferential, quick and trouble-free finance', 'quick loans - any purpose'. Nowadays, there seems no end to the offers of loans and credit. There are special loans for members of motoring organisations, for credit card holders, special deals for doctors, and credit for students. If you can't yourself think of a reason for taking out a loan, the advertisements will help you with suggestions of second cars, holidays in the sun, or the kitchen of your dreams. And if you're already struggling to cope with a backlog of debts, there are plenty of advertisements encouraging you to take out a single loan for

CASE HISTORY

A member of a motoring organisation was sent an invitation by its financial services arm to take out a personal loan. The letter said that the organisation had negotiated with a particular bank in order to provide its members exclusively with preferential, quick and trouble-free finance facilities. The tables accompanying the e-mail shot explained that the rate of interest would be fixed at the time the loan was taken out and a particular Annual Percentage Rate (APR) was quoted.

The member was surprised that not only was the interest rate much higher than that currently being offered by many High Street banks - in some cases over S per cent higher - but the loan package also seemed very similar and therefore not at all exclusive to members of the organisation.

Moral: If you're tempted by a special offer, don't automatically assume that you're getting a good deal. Check that you can't get the same, similar - or even better - goods or services elsewhere at a better price.

`paying off all your store card bills' or to 'put all your eggs in one basket' and 'even have cash to spare'.

The majority of loan advertisements come within the ambit of the Consumer Credit Act 1974. The Act doesn't cover advertisements aimed at companies and doesn't cover advertisements for loans which will always exceed £45,000 unless they are secured loans (seep. ). The definition of advertisement is very wide, covering not just printed advertisements of all kinds but even the patter of a salesman as well as radio and TV commercials, displays in shops, and so on.


For more on Secured Loans And Second Mortgages - Click Here

Advertisements For Deposits

Advertising of deposit savings accounts, such as those offered by building societies and banks (including finance houses) is covered by the British Code of Advertising Practice and supplemented by a voluntary code under the auspices of the Bank of England and the Registry of Friendly Societies.

The main areas covered by the Code are outlined below.

Deposit-based personal pension plans are also to be covered by additional rules (covering aspects such as projection of possible benefits) - regulations under the Social Security Act 1986 were expected to come into force in 1989, but had... see: Advertisements For Deposits


More money