The Advertising Standards Auth-ority has banned an ad by a claim-chaser on missold mortgages for misleading statements about the proportion of loans that are unenforceable.
The ASA also found that the firm failed to make it clear that a fee applied to its service.
The advert by Unfair Credit Direct was headlined, Missold mortgages, and the text of the advert read: “Your unsecured loan and credit card agreements may be unenforceable? Call us now to find out. Do you know that through brand new legislation 70 per cent of credit agreements may be unenforceable?”
But the ASA found that, while Unfair Credit Direct said its own figures and caseload poin-ted to the claim being accurate, the ASA had not seen evidence supporting the claim that 70 per cent of credit agreements might be unenforceable and concluded that the ad was misleading.
Unfair Credit Direct argued that its claim was based on its initial studies conducted within the industry.
The ASA also found that, while Unfair Credit Direct did not charge up-front fees, it did charge once it was in a position to move forward with a case.
The ASA says: “We considered that the ad should have made clear that a fee applied to the advertised service and, because it did not, we concluded that the ad was misleading.”