Credit should not be marketed as easy solutions, as ways to balance one's finances or use other similar expressions which, in fact, compromise the consumer's ability to make sensible credit decisions regarding their own finances. Businesses offering credit have an obligation to ensure that advertising does not attract the consumer to excessive indebtedness. Therefore, advertisers need to be extra careful in choosing what expressions to use to market credit products.
Praising speed often encourages rash decisions
Responsible lending and good credit issuing practices require that the consumer has plenty of time to consider credit decisions and become familiar with the key credit terms. It is inappropriate to urge consumers to take loans on a whim, for instance by promising lightning fast service. Expressions used in advertising such as ”Send in an application at the Hakaniemi subway station and you'll have the funds in your account by the time you reach Rautatientori central station” or ”money in your account super fast – even within fives minutes” were deemed inappropriate.
Inexperience of young consumers must be taken into consideration
Consumer credit is, regardless of the type of credit, the kind of product whose marketing is assessed more strictly than that of other consumer products. Assessment is particularly strict when marketing is targeted at young people. Young consumers' financial management skills and life experience are undeveloped and part of responsible lending is taking that fact into consideration. Lenders must avoid practices which tend to cause payment difficulties and excessive indebtedness.
For instance, a campaign which appealed to young consumers by announcing a raffle for two three-day tickets to a rock festival for those who take quick loans was deemed inappropriate. As a rule, it is not considered appropriate to attract consumers to credit relationships through discounts or other forms of compensation. What made the case particularly reprehensible was the focus on attracting young consumers, which clearly was the intention considering the prize of festival tickets.
Another example featured the following advertising copy: ”Going out tonight? Here's 100-1000 euros on your account, seize the moment!” The advertising message was deemed to appeal to young consumers and inappropriately urge them to take out a loan.
Another advertisement stating ”the more loans you take out and pay off, the better your chances are of winning an iPod or other prizes”. This type of marketing is inappropriate, as the special offer distracts the consumer's attention from the loan itself by focusing on the chance of winning a prize. Another aspect considered in the assessment of the advertisement in question was its target group, which for quick loan products tends to be young adults. They are more prone to take out a loan in the hope of winning a prize due to their lack of financial management skills and life experience.
Debt may not be used to urge consumers to gamble
Playing poker and other forms of gambling involve certain risks. If the player is unable to get compulsive gambling behaviour under control, he may gradually become addicted to it. There is widespread concern in society regarding gambling addiction and the problems caused by it. Compulsive players may gamble away money intended for rent, food and debt repayment, causing various social problems.
Recently there was a television advert featuring a young man at a poker table, running out of chips. The man took out his phone and quickly received a pile of chips. The flag of a quick loan company was then displayed on screen along with a male character saying that the company could ”throw more chips your way”.
The advert clearly appealed to compulsive gaming and guided the consumer's behaviour towards financing gambling with debt once he runs out of his own money. A responsible lender does not, however, urge customers to gamble on borrowed money. The advert was deemed contrary to good marketing practices.