Mortgage and finance broker First Choice Finance has been forced to change its credit advertising following action by the OFT.
First Choice Finance was considered to have breached the consumer credit advertisement regulations in its advert in the Scottish Daily Mirror on January 27.
The OFT considered the advertisement to have breached rules as it displayed a low rate of interest at 4.25 per cent but did not state the more representative APR of 6.3 per cent more prominently and failed to state it was more representative. It also did not feature the required risk warning in a prominent position nor was it clear the warning was part of the advertisement.
OFT director of consumer regulation and enforcement Christine Wade says: “Consumers need to have clear information when they are going to take on a serious financial commitment like a loan. In these circumstances the information provided fell short of the clarity needed to inform consumers of the rates of interest and risks involved in taking out these loans.”