AN ADVERT from payday lender Peachy.co.uk has been slammed by the watchdog for encouraging people into stockpiling food for Brexit using loans.
The lender, which has an average APR of a whopping 720 per cent, hands out loans of between £100 and £1,000 to cash-strapped Brits be repaid in up to a year.
Peachy Peachy is a short-term lender with an average APR of 720 per cent
But the Advertising Standards Authority (ASA) has branded one of its emails to customers as “irresponsible” and banned it from appearing again.
It says the ad was likely to put “emotional pressure” on borrowers pushing them into taking out loans they couldn’t afford or risk being unable to feed themselves or their families.
It adds that it played on the “fear” surrounding Brexit, particularly uncertainty over the availability of essential products and the general economic stability after the UK leaves the European Union.
The ASA worries that this may have caused concern for financially vulnerable people who are already struggling or worrying about their financial situation.
How to cut the cost of your debtBEING in a large amount of debt can be really worrying. Here are some tips from Citizens Advice on how you can take action:
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – write down your income and take away your essential bills such as food and transport. If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – if you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them. Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay.
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further. Organisations such as Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
The advert, which was sent this January, said: “Let’s be honest here, no one really knows what’s going on with this whole Brexit malarkey… it’s supposed to be happening soon though and some say it could affect the amount of food available.
“About half of the fresh food we consumer is imported after all…
“We do not want to believe that Brexit will impact the amount of food available but it’s still a good idea to have a little stockpile ready. That way you’re always prepared for the worst…
“Things can pop up even when you think everything is going swimmingly… That’s when you might need a little extra help.”
Peachy’s advert encouraged people to take out loans to stockpile food for Brexit
The ASA couldn’t tell us if anyone had taken out a loan on seeing the advert but felt that the content alone was enough to impose a ban.
Peachy.co.uk, which is owned by Cash On Go, told the ASA that the reference to Brexit was included to make the ad topical and believes it was mentioned in a light hearted manner.
The short-term lender adds that it’s “sorry to learn” the campaign has not been interpreted as intended.
The Sun has asked Peachy.co.uk if wants to send a response directly to ourselves and we’ll update this story if we get one.
CAM-SHAFTED How auto dealers cause buyers on car loans to pay £1,000 too much in interest WHEEL DEALS Motorists overcharged £1,000 by dealers for loans to buy cars, warns watchdog THAT’S WRONGA Over 10,000 Wonga users to miss out on compensation for mis-sold payday loans ALL A-LOAN WageDayAdvance and Juo Loans go bust leaving 650,000 customers in limbo LOAN LIES Borrowers pay HUNDREDS extra for loans as lenders charge over advertised rates
It comes after a huge jump in Brits taking out payday and short-term loans in last 12 months.
Payday loan broker Quick Loans, which charges, up to 1,575 per cent interest, even wants people to go to PRISON for getting into debt.
But millions may be due payday loan refunds.
The Sun’s Stop the Credit Rip-off campaign wants to put an end to extortionate credit deals
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at firstname.lastname@example.org