A payday loan advert is broadcast every 78 seconds: TV plugs for high-interest loans were seen 7.5BILLION times last year

• Ofcom reveals number of ads soared from 17,000 in 2008 to 400,000 in 2012
• It would take 138 days to watch all of the adverts back-to-back
• The ads were viewed an astonishing 7.5billion times last year
• Labour's Ed Miliband has called for the ads to be banned from kids' TV
  

By Matt Chorley, MailOnline Political Editor

Published: 07:29 EDT, 10 December 2013 | Updated: 20:49 EDT, 10 December 2013

Children as young as four see 70 adverts for payday loans on television each year.

In total, adverts from firms offering high interest, short-term credit were watched almost 600million times by children last year, figures suggest.

It comes after a 23-fold rise in the number of such commercials in only three years, with 397,000 aired in 2012 – more than half during the day.

TV watchdog Ofcom revealed how the number of adverts has soared from just 17,000 in 2008 to 400,000 last year, which would take 138 days  to watch back-to-back around the clock.

Adverts for the likes of WOnga (left) and Payday UK have been criticised for normalising high interest loans

The number of payday loan adverts hit almost 400,000 in 2012, up from just 17,000 in 2008

Payday loan firms are accused of particularly targeting using daytime TV to persuade the unemployed and those raising children to take out loans charging more than 5,000 per cent APR interest.

Charities and unions called for a crackdown on the adverts which 'prey' on the vulnerable and influence even very young children.

Labour leader Ed Miliband has called for the adverts to be banned from children’s TV altogether, after accusing the firms of creating a ‘quiet crisis’ for thousands of families swamped by debt.

And money expert Martin Lewis condemned adverts during children’s TV as ‘inappropriate propaganda’ which means even the under-10s now nag their parents to borrow money to buy toys.

In 2009 there were just 17,000 payday loan adverts shown on UK television, recording 12million views or ‘impacts’ among adults and 3million 4-15-year-olds.

THE BIG PLAYERS AND THEIR BIG RATES IN A £2BILLION INDUSTRY

WONGA Typical APR 5853%

Signed a four-year deal to sponsor Newcastle United. This month hired a Bafta-nominated director to produce a film on the controversial company to counteract criticism about its huge profits and sky-high interest rates.

CASH LADY Typical APR 2670%

Courted controversy when it hired ex-bankrupt reality star Kerry Katona to front ad campaign.  But this summer the Atomic Kitten star declared herself bankrupt for the second time in five years due to unpaid debts. Her money troubles led to her being dropped as the face of Cash Lady.

PAYDAY UK Typical APR 2610%

Bought by US giant Dollar Financial in 2011 for a reported $195million. It is now part of the same firm which owns The Money Shop, which has 550 stores nationwide.

QUICK QUID Typical APR 1734%

Spent an estimated £3.2 million, advertising during programmes like Friends, Desperate Scousewives and Hollyoaks. In July it apologised after sending emails threatening to send in debt collectors to people who had not borrowed money.

By last year the number of adverts had rocketed to 397,000, with 7.5billion impacts among adults and 596million for children.

It means that last year every adult saw 152 payday loan adverts, and 4-15-year-olds watched the equivalent of 70 each.

A survey on MoneySavingExpert.com found a third of parents reported their under-10s repeating payday lenders’ slogans, while 14 per cent said that when they had refused to buy a toy, their child had nagged them to take out a payday loan.

Martin Lewis, creator of MoneySavingExpert.com said: 'The Ofcom research is proof that payday lenders are grooming our children to be the next generation of borrowers, either deliberately, or due to lack of care when placing adverts. 

'Our research shows 14 per cent of parents of under-10s have had their kids suggest a payday loan when they’ve been turned down for things like toys.

'But the real danger is the normalisation of these far-from normal loans to the next generation.

'We called six weeks ago for the Government to ban all high-cost credit advertising from kids’  TV. 

'The Labour Party has picked it up and now supports the policy.  Today’s research should act as a clarion call for others to follow. 

'Mr Cameron, Mr Clegg – please, its time you too supported this and made it happen.'

Ofcom published audience research into advertising of ‘payday’ loans on TV.

Payday loans accounted for just 0.1 per cent of all advertising spots, but that figure has risen sharply to 1.2 per cent.

More than half of payday loan adverts were shown during daytime TV from 9:30am to 4:59pm.

A further 16 per cent were shown between 5pm and 8:59pm and 15 per cent between 11pm and 5:59am, 9 per cent between 6am and 9:29am and the remaining 6 per cent between 9:00pm and 10:59pm.

Around 1 per cent of all the adverts were show on children's TV channels.

Citizens Advice Chief Executive Gillian Guy said:
'Payday lenders are unashamedly and irresponsibly using adverts to prey on poorer households in a bid to capitalise on the cost of living crisis.

'Payday lenders should not be targeting children and teenagers with adverts.

'It is deeply concerning that children and teenagers were exposed to three times as many payday loan ads in 2012 compared to in 2010.

'More and more adverts are appearing on music channels and TV stations popular with teenagers and young people as lenders try to entice the next generation of borrowers.

'Lenders’ targeting of young people and those on low incomes is coupled with industry failures to make sure loans are only given to people who can afford to repay.  Citizens Advice has found 61 per cent of loans do not come with proper checks to ensure the borrower can pay back the loan.'

One in four payday loan adverts is shown on a music channel and 8 per cent appear on movie channels.

The vast bulk - 42 per cent - are shown on the main terrestrial channels.

Mr Miliband last month called for the ads to banned during any programmes aimed at children. He said: 'As a father of two young boys, I know how influenced they can be by what they see.

'And I don't want payday lenders taking advantage of the cost of living crisis and targeting children in this country.

'It is wrong, it is not what should be happening and that is why a Labour government would stop them advertising during children's TV.

'It's bad for young people, it's bad for families and it's bad for communities.'

More than half of all payday loan adverts are seen during daytime TV, amid fears they are targeting the unemployed

The union Unite called for a 9pm watershed for payday loans adverts.

Unite assistant general secretary Steve Turner said: 'This research paints a horrific picture of a generation of children and young people being groomed into a culture of debt by this bombardment of advertising.

'It is not just children being infected by this payday loan culture. Research has shown that people are borrowing £660 a month just to pay for the necessities of life - food, housing and heating.

'The ASA should give a robust lead in introducing a 9pm watershed for these payday loans so that children are not influenced by this insidious onslaught.

'The number of adverts should be curbed as the public are being duped into thinking that getting into debt is an easy option and pain free - quite the contrary.'