Speaking at the latest Mortgage Introducer Sub-Prime & Technology Forum in Manchester, held in association with the Mortgage Times Group, Richard Lawes, senior associate, Financial Promotions team at the FSA, forced home the issue of advertising.
Despite only taking four firms to enforcement, 300 broker firms had been contacted regarding Financial Promotions, highlighting continued failings in this area. Risk statements lacking prominence was a key area that the FSA intended to address, alongside missing APRs, unclear or incomplete information about fees, and information about debt consolidation.
Lawes said: “Information about debt consolidation should be clear and outline how this will be achieved and that the consumer may have to pay greater interest in the long run because of the longer payment period. In addition, on websites, it is important to think about the customer journey. If a consumer has to scroll down to find key information such as the APR, think about it – is this good practice?”
Lawes added that the key to successful Financial Promotions was to ensure that consumers were informed about credit terms and conditions, including those in advertisements, so they could easily compare terms and shop wisely for credit.
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