'Irresponsible' payday loan advert which told people to borrow for their birthday celebrations is banned

  • Pounds to Pocket sent emails offering people loans for celebrations
  • It said borrowing the money would give them a 'worry-free' birthday
  • But debt advice charity branded the marketing 'irresponsible'
  • Lender has now removed email from circulation after watchdog probe
  • Company claimed email showed customers 'their business was valued'

Pounds to Pocket sent people emails ahead of their birthdays offering to loan them money to fund their celebrations

Pounds to Pocket sent people emails ahead of their birthdays offering to loan them money to fund their celebrations

An email advert from payday lender Pounds to Pocket has been banned for encouraging customers to use a short-term loan to fund their birthday celebrations.

The email arrived with a subject line reading 'Happy Birthday from Pounds to Pocket' and went on to say: 'We’d like to wish you the best on your special day! Now you can apply for the money you need to enjoy your birthday worry-free.'

The Citizens Advice charity complained that the ad promoted a casual 'worry-free' attitude to taking out a short-term loan and irresponsibly encouraged consumers to use the money to fund birthday parties.

CashEuroNetUK, trading as Pounds to Pocket, acknowledged that taking out a short-term loan was a matter for serious consideration but said it went to 'great lengths' to ensure ads were not targeted at 'inappropriate' individuals, such as children.

It said the point of the birthday promotion was to show customers that their business was valued.

But after an investigation by watchdog the Advertising Standards Authority (ASA) the lender said it would remove the email from circulation.

The AQA noted that a 20% discount was offered on a first scheduled payment for those who applied on the day the email was received, and the funds would be sent within 10 minutes if approved.

Ruling that the ad must not appear again in its current form, the ASA said: 'While possibly desirable, having money to spend on birthday celebrations was unlikely to be seen as essential, and by encouraging recipients to take advantage of the service through a special offer discount for immediate application, Pounds to Pocket had urged a decision, thereby limiting the amount of time those interested in a loan were able to give to proper consideration.

Gillian Guy of the Citizens Advice Bureau said it was irresponsible for the firm to market loans as 'worry-free'

Gillian Guy of the Citizens Advice Bureau said it was irresponsible for the firm to market loans as 'worry-free'

'We concluded that the email was irresponsible because it encouraged taking a short-term loan for frivolous spending and promoted the process of borrowing as trivial and without responsibility.'

Citizens Advice chief executive Gillian Guy said: 'Payday loans can add to financial worries, not take them away. It is irresponsible for any lender to promote a casual attitude to borrowing by suggesting using loans are worry-free and can be used to fund celebrations.

'Citizens Advice helps thousands of people each year who have been landed in debt because lenders failed to carry out checks to assess whether people can afford to repay.

'The ASA’s decision to ban this advert sends a strong message to other payday lenders that this type of marketing is irresponsible and not appropriate.' 

Campaigners hope the Advertising Standards Authority ruling will curb marketing by payday lenders

Campaigners hope the Advertising Standards Authority ruling will curb marketing by payday lenders


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