3:45 am, Fri 20 Dec 2013
Controversial payday loan lender Wonga has denied it actively shows adverts during children's TV programmes, arguing it has a "strict, long-standing policy" not to advertise to young adults.
Wonga is well known for its TV ads featuring a trio of elderly puppet characters named Betty, Joyce and Earl who explain the process of taking out a short-term cash loan to viewers.
The idea that Wonga advertises on children's TV channels or programmes is a myth. We have a strict, long-standing policy not to advertise in this way.
– Wonga spokesman
Their denial came after a group of MPs called for
a ban on payday loan adverts during children's TV shows.
3:05 am, Fri 20 Dec 2013
A personal finance expert who warned MPs children risked being "groomed" by payday loan ads is "delighted" they have called for them to be banned during kids TV shows.
MoneySavingExpert.com Martin Lewis said children were so used to payday loan adverts they nagged their parents into getting one so they could buy them more toys.
From our own research, we know children ask their parents to get a payday loan to buy them toys.
Whilst parents have the power to say no, it's evidence that kids see this dangerous type of niche borrowing as part of everyday life.
– Martin Lewis found of MoneySavingExpert.com
2:44 am, Fri 20 Dec 2013
Children risk being "groomed" towards using payday loans if adverts for companies like Wonga continue to be screened during TV shows aimed at young children, a group of MPs has warned.
The next generation risk financial uncertainty by having a relaxed attitude to payday loans, MPs warned.
The Business, Innovation and Skills (BIS) Committee recommended banning payday loan adverts during children's TV as it made the controversial financing look "fun" and "easy".
The committee heard evidence from consumer campaigners who warned that "cartoon puppets" used on payday lenders' adverts suggest that taking out a loan can be fun.
The average child aged four-15-years-old was bombarded by 70 payday loan adverts throughout last year, MPs said in their report.
The MPs' committee chairman Adrian Bailey said: "Children's programmes are simply not an acceptable place for payday loan adverts."
Read more: Miliband: Ban kids TV loan ads