Kerry Katona back in new payday loan advert days after original was banned

 

Just days after an advert selling payday loans featuring reality television star Kerry Katona was branded “irresponsible” and banned, the former bankrupt is back on our screens in a new advert for the same company.

The Advertising Standards Authority (ASA) last week criticised the original advertisement for irresponsibly suggesting that people could borrow cash to help fund a celebrity-style lifestyle. It challenged whether the ad was misleading and irresponsible because the payday lender – Cash Lady – promoted itself as an alternative to banks while offering an APR higher than 2,000 per cent.

The ASA said references to Katona’s financial problems and bankruptcy within the ad “had the potential to encourage vulnerable viewers with financial problems and/or restricted credit from seeking to resolve them through the payday loan service” and concluded the ad was irresponsible.

But many people who cheered when the ad was banned were horrified to see a similar version appearing on television late last week. The ASA has said it is powerless to stop the Cash Lady from advertising again using Ms Katona as long as the new commercial has been cleared for broadcast.

The situation evokes memories of the long-running spat between Ryanair and the ASA where the low-cost carrier was hauled before the watchdog on numerous occasions in 2007 after falling foul of its standards. Soon after each ad was banned Ryanair released another, altered, advert.

By November, after Ryanair had found itself on the wrong side of ASA judgments for the third time in four months, the firm’s head of communications branded the watchdog the “awfully stupid authority”, adding it made “absurd decisions” based on complaints from competitors not customers.

Peter Sherrard, the communications chief, claimed he paid “no attention to anything the ASA says” and both Ryanair and the ASA referred the other to the Office of Fair Trading (OFT).

The latest case again draws attention to the ASA’s powers to stop companies slightly altering ads after rulings and putting them back on the air. While some firms spend millions on adverts – so any ban would hurt financially – Ryanair’s were low cost and made in house. The lack of spending meant it could quickly create another advert almost immediately after seeing their last ad banned by the ASA.

Commenting on the latest case, the ASA said: “It is not our role to ban entire sectors, including payday loans, from advertising or to outlaw the use of a celebrities in ads; but we are responsible for ensuring ads are prepared in a responsible way and do not contain anything harmful or likely to mislead.” Gillian Guy, chief executive of Citizens Advice, has campaigned against irresponsible advertising by payday lenders. She said: “Behind the glamorous marketing lie extortionate interest rates and charges and the misery of multiple rollover loans.”

The OFT has written to the largest payday lenders warning them to play fair with borrowers or be shut down.

Arts and Entertainment
Ellie Levenson’s The Election book demystifies politics for children
bookNew children's book primes the next generation for politics
Arts and Entertainment
Pharrell Williams' “Happy” was the most searched-for song lyric of 2014
musicThe power of song never greater, according to our internet searches
Arts and Entertainment
Roffey says: 'All of us carry shame and taboo around about our sexuality. But I was determined not to let shame stop me writing my memoir.'
books
Arts and Entertainment
Call The Midwife: Miranda Hart as Chummy

tv Review: Miranda Hart and co deliver the festive goods

Arts and Entertainment
The cast of Downton Abbey in the 2014 Christmas special

tvReview: Older generation get hot under the collar this Christmas

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment

ebooksNow available in paperback
Arts and Entertainment

ebooks
Arts and Entertainment
Transformers: Age of Extinction was the most searched for movie in the UK in 2014

film
Arts and Entertainment
Mark Ronson has had two UK number two singles but never a number one...yet

music
Arts and Entertainment
Clara Amfo will take over from Jameela Jamil on 25 January

radio
Arts and Entertainment
This is New England: Ken Cheeseman, Ann Dowd, Frances McDormand and Richard Jenkins in Olive Kitteridge

The most magnificently miserable show on television in a long timeTV
Arts and Entertainment
Andrea Faustini looks triumphant after hearing he has not made it through to Sunday's live final

TV
Arts and Entertainment
Rhys says: 'I'm not playing it for laughs, but I have learnt that if you fall over on stage, people can enjoy that as much as an amazing guitar solo'
musicGruff Rhys on his rock odyssey, and the trouble with independence
Arts and Entertainment
Krysia and Daniel (Hand out press photograph provided by Sally Richardson)
How do today's composers answer the challenge of the classical giant?
News
Shenaz Treasurywala
film
News
tv
Arts and Entertainment
Jason Watkins as Christopher Jefferies
tv
Arts and Entertainment
Star Wars Director JJ Abrams: key character's names have been revealed
film
Arts and Entertainment
Pharrell Williams won two BBC Music Awards for Best Song and International Artist
music
Arts and Entertainment
Mark, Katie and Sanjay in The Apprentice boardroom
TV
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

ES Rentals

    Independent Dating
    and  

    By clicking 'Search' you
    are agreeing to our
    Terms of Use.

    War with Isis: The West needs more than a White Knight

    The West needs more than a White Knight

    Despite billions spent on weapons, the US has not been able to counter Isis's gruesome tactics, says Patrick Cockburn
    Return to Helmand: Private Davey Graham recalls the day he was shot by the Taliban

    'The day I was shot by the Taliban'

    Private Davey Graham was shot five times during an ambush in 2007 - it was the first, controversial photograph to show the dangers our soldiers faced in Helmand province
    Revealed: the best and worst airlines for delays

    Revealed: the best and worst airlines for delays

    Many flyers are failing to claim compensation to which they are entitled, a new survey has found
    The stories that defined 2014: From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions

    The stories that defined 2014

    From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions
    Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations

    Disaster looming? Now you know where to head...

    Which British city has become the first to be awarded special 'resilience' status by the UN?
    Finally, a diet that works: Californian pastor's wildly popular Daniel Plan has seen his congregation greatly reduced

    Finally, a diet that works

    Californian pastor's wildly popular Daniel Plan has seen his congregation greatly reduced
    Say it with... lyrics: The power of song was never greater, according to our internet searches

    Say it with... lyrics

    The power of song was never greater, according to our internet searches
    Professor Danielle George: On a mission to bring back the art of 'thinkering'

    The joys of 'thinkering'

    Professor Danielle George on why we have to nurture tomorrow's scientists today
    Monique Roffey: The author on father figures, the nation's narcissism and New Year reflections

    Monique Roffey interview

    The author on father figures, the nation's narcissism and New Year reflections
    Introducing my anti-heroes of 2014

    Introducing my anti-heroes of 2014

    Their outrageousness and originality makes the world a bit more interesting, says Ellen E Jones
    DJ Taylor: Good taste? It's all a matter of timing...

    Good taste? It's all a matter of timing...

    It has been hard to form generally accepted cultural standards since the middle of the 19th century – and the disintegration is only going to accelerate, says DJ Taylor
    Olivia Jacobs & Ben Caplan: 'Ben thought the play was called 'Christian Love'. It was 'Christie in Love' - about a necrophiliac serial killer'

    How we met

    Olivia Jacobs and Ben Caplan
    Bill Granger recipes: Our chef's breakfasts will revitalise you in time for the New Year

    Bill Granger's healthy breakfasts

    Our chef's healthy recipes are perfect if you've overindulged during the festive season
    Transfer guide: From Arsenal to West Ham - what does your club need in the January transfer window?

    Who does your club need in the transfer window?

    Most Premier League sides are after a striker, but here's a full run down of the ins and outs that could happen over the next month
    The Last Word: From aliens at FA to yak’s milk in the Tour, here’s to 2015

    Michael Calvin's Last Word

    From aliens at FA to yak’s milk in the Tour, here’s to 2015