Despite the fact that the demand for payday loans is still high, this financial product cannot be advertised like any other. There are certain restrictions enshrined in the Act, which the loan company should strictly comply with. What, then, should contain payday advertising to make it legal? It is worth reaching to the source itself, i.e. to the content of the Consumer Credit Act.
What should a payday advertisement contain?
The legislator included the discussed provisions in the Act on consumer credit, and specifically on advertising referred to in art. 7 and 8.
The lender or credit intermediary in advertisements regarding consumer credit containing data on the cost of consumer credit, in particular the interest rate, provides the consumer in a clear, comprehensible and visible way:
- loan interest rate including information on whether it is a fixed, variable or whether both rates apply
- this information is provided along with the separation of fees included in the total cost of the loan
- total loan amount
- actual annual interest rate (more commonly known as APRC – editor’s note)
It is worth noting that in 2017 the legislator introduced an amendment thanks to which art. 7 has enriched with another recipe:
Lender or credit intermediary in advertisements related to consumer credit other than advertisements referred to in art. 7 item 1, provides the consumer with the actual annual interest rate.
Google ADS has its own reservations regarding the advertising of financial products
The lion’s share of traffic on various types of websites is generated by Google search engine, thanks to which it takes from a few to several seconds to find the answer to a user’s query.
The company also earns from advertisements, thanks to which it gives many companies the opportunity to present their products under the user’s query.
In order to successfully position your financial product in Google search engine, you must take into account the regulations of the given organization, which refers to certain restrictions related to advertising of financial services.
It’s hard to speculate where the idea for some advertising restrictions from Google, which have no mapping in the legislation of individual countries, came from. However, companies wishing to attract customers through Google should adhere to the guidelines.