A TV advert for payday loans firm Wonga has been banned after the advertising watchdog ruled it confused the public about the interest rates that applied.
The commercial featured a conversation between two puppets about the costs of a Wonga short-term loan. The Advertising Standards Authority upheld the complaints, saying it was misleading by implying a representative APR of 5853% was "irrelevant". The authority said the advert must not appear again in its current form. In the advert, the puppets said: "Right, we're going to explain the costs of a Wonga short-term loan. "Some people think they will pay thousands of per cent of interest. They won't of course - that's just the way annual rates are calculated. Say you borrowed £150 for 18 days, it would cost you £33.49." 'Without clear understanding'The Advertising Standards Authority (ASA) received 31 complaints about the advertisement. Wonga said it was not fair or reasonable to view the advert as confusing...Read more here