FCA warns firms to stop using misleading credit ads

The FCA has written to c.28,000 consumer credit firms warning them not to use terms such as ‘no credit check loans’, ‘loan guaranteed’, ‘pre-approved’ or ‘no credit checks’ in their loan adverts. The FCA has warned firms that using such terms in their ads is misleading as they may give consumers the impression that they will automatically get a loan if they apply or that they can get a loan without the lender checking they can afford it.

If firms do not comply, the FCA may ban ads, require firms to change or withdraw them or even remove a firm’s permissions to engage in regulated credit activity.

Lucy Hadrill