A sweep of loan advertisements by the Office of Fair Trading (OFT) found that 60 per cent of advertisements did not comply with new advertising regulations.
The OFT published their findings along with guidelines concerning the new regulations for advertising that came into force in October last year.
Most of the problems concerned the Annual Percentage Rate (APR) rate for loans which was either absent, or in small print. The OFT also found that in some adverts multiple APRs were displayed, and in many cases the APR was displayed without information on payments and charges.
OFT chairman, Sir John Vickers, said: “The findings of our sweep were most unsatisfactory for consumers, who must have clear information on the cost of loans.”
In addition to publishing guidelines on the new rules, the OFT will work with businesses to achieve compliance and resort to court action if necessary.
The credit industry is under more pressure to provide consumers with more information about debt following criticisms of credit products such as payment protection insurance and store cards.
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