Kerry Katona originally found fame through pop band Atomic Kitten, but her fame apart from the band occurred after winning ‘I’m a Celebrity… Get Me Out of Here’ in 2004. The star has since been subject to a great deal of media attention focusing on her marriage breakdown and her money troubles (in 2008 Kerry was declared bankrupt). It is these money issues the celebrity discusses in the banned ad.
The advert for PDB UK trading as Cash Lady received 29 complaints that deemed the advert irresponsible due to its focus on Kerry’s financial situation. Those who objected to the advert said it was encouraging people in similar situations (i.e. bankruptcy) to borrow from payday lenders.
In the advert Kerry Katona says: “We’ve all had money troubles at some point, I know I have. You could see your bank and fill in loads of forms, but is there an easier way to get a loan … So if you need extra cash go to http://www.cashlady.co.uk. Fast cash for fast lives.”
The Advertising Standards Authority (ASA) have also complained that the advert was misleading by promoting itself as an alternative to banks while offering an APR in excess of 200%.
A spokesman from Cash Lady has said they are surprised and disappointed by the ASA’s decision, stating that: “We recommend that payday loans should only be used for emergencies or unexpected expenses, and we will make that point much more clearly in future adverts.”
Currently the payday loan industry is under investigation by the Office of Fair Trading. A review into the sector has already resulted in three lenders having their licences revoked and a further two surrendering theirs.
If you are struggling financially, a payday loan is not your only option. Speaking to an accountant could help you look into paying off your debts or announcing yourself as bankrupt. For more information, please see our Bankruptcy page.
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