Over 60% of advertisements in regional newspapers, and 68% in car magazines, failed fully to comply with new advertising regulations, according to a review carried out by the Office of Fair Trading and trading standards services across the UK.
The findings were revealed yesterday as updated guidance explaining the credit advertising rules was published.
The nationwide review found a poor rate of compliance with the Consumer Credit (Advertisements) Regulations, which came into force on 31st October 2004. Most breaches of the regulations concerned the way in which typical APRs were depicted in advertisements, including:
- no typical APR being shown, where this is required by law;
- displaying more than one typical APR in an advertisement as many as six were displayed in one advert;
- the typical APR not being given the required prominence; and
- the typical APR not being shown together with information on payments and charges.
OFT Chairman Sir John Vickers said: "The findings of our sweep are most unsatisfactory for consumers, who must have clear information on the costs of loans. The OFT and trading standards services are working with business to drive up compliance, and will take enforcement action where necessary."
Those businesses found to be non-compliant have received advice and support, according to the OFT. But it warns that further action will be taken where there is evidence of continued non-compliance and, where necessary, court action will be considered.
To date, the OFT has handled 28 cases under the 2004 Regulations and in each case achieved compliance through advice or warning letters.
The OFT also published updated guidance to businesses yesterday.
