Payday lender Peachy hit by fresh allegations of misleading advertising

Another payday lender has been rapped for misleading advertising today.

In the dock this time is Peachy, owned by Cash On The Go, which has had a TV ad banned by the Advertising Standards Authority because it misled viewers and failed to display the interest rate charged prominently enough.

The Authority has banned the ad from being broadcast again. It was forced to act against Britain’s biggest payday lender Wonga in September after it branded one of its radio ads irresponsible and earlier this year it banned a payday loan ad by Cash Lady, featuring two-times bankrupt Kerry Katona.

Meanwhile the Office of Fair Trading has revealed that is has doubled the number of payday lenders it has put under investigation. It has now opened individual probes into six firms and is also reviewing detailed evidence on another 15 lenders.

On Monday the government announced it will introduce a cap on the cost of payday loans after intervention by the Archbishop of Canterbury.