An advertisement for payday loans featuring TV personality Kerry Katona has been banned in part for irresponsibly suggesting the money could help to fund a celebrity-style lifestyle.
The ad for PDB UK, trading as Cash Lady, featured Katona saying: "We've all had money troubles at some point, I know I have. You could see your bank and fill in loads of forms, but is there an easier way to get a loan... So if you need extra cash go to www.cashlady.co.uk. Fast cash for fast lives."
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Kerry Katona
The ad drew 29 complaints that it was irresponsible because it focused on Katona's financial problems and encouraged people in similar situations to borrow money.
The Advertising Standards Authority (ASA) also challenged whether the ad was misleading and irresponsible because it promoted itself as an alternative to banks while offering an APR in excess of 2,000%.
Cash Lady said Katona was selected as its "face" because she had experienced money troubles in the past and their customers would be able to relate to her.
It said its loans were limited to £300 and were therefore aimed at those experiencing relatively low-level short-term financial difficulties with a need to bridge a gap between paydays.
However the ASA said references to Katona's financial problems within the ad "had the potential to encourage vulnerable viewers with financial problems and/or restricted credit from seeking to resolve them through the payday loan service" and concluded that the ad was therefore irresponsible.
It said some viewers with restricted credit may have found the product in the ad particularly attractive because of their identification with Katona and the references to her own past financial problems.
The ASA also found that the APR was not more prominent than the other information which triggered its requirement in the ad, therefore breaching the code.
It ruled: "The ad should not appear in its current form. We told Cash Lady to take care with the overall presentation of information of its loans."
Despite her fortune for her Atomic Kitten days and various relaity TV appearances, Kerry was officially made broke in 2008 when she failed to cough up the final £82,000 of a £417,000 tax bill. A turn as a housemate on 'Celebrity Big Brother' helped her to finally pay off her debts. (credit:Getty Images)
Shane Filan(02 of11)
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The Westlife star and property investor was made bankrupt in June 2012 when the housing market crashed, and left him owing more than €5.5m (£4.45m) to Ulster Bank and Bank of Ireland. (credit:Getty Images)
Martine McCutcheon(03 of11)
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Martine filed for bankruptcy in in 2013, when she amassed debts of £187,000. (credit:Getty Images)
Stephen Baldwin(04 of11)
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When Stephen defaulted on a mortgage payment in 2009, he filed for bankcruptcy claiming he was $2.3m in debt. (credit:Getty Images)
Joe Swash(05 of11)
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The former 'EastEnders' star was made bankrupt by London's High Court in 2009 after he failed to pay a £20,000 tax bill. (credit:Getty Images)
Peter Stringfellow(06 of11)
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Peter lost a reported $20m in 1992 after a failed attempt to crack America. (credit:Getty Images)
Christopher Biggins(07 of11)
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Biggins reckons that going into voluntary bankruptcy 15 years ago was the 'best thing that ever happened' to him. The star was forced into it after work offers slowed down. (credit:Getty Images)
Mike Tyson(08 of11)
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The boxer owed both the US and British governments $17m in taxes, $750,000 to law firms and $300,000 to limo services and became bankrupt in 2004. (credit:Getty Images)
Donald Trump(09 of11)
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He may be a multi-billionaire, but Donald Trump has filed for corporate bankruptcy four times! However, he has never filed for personal bankruptcy. (credit:Getty Images)
Neil Morrissey (10 of11)
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Neil entered into an individual voluntary arrangement (IVA) after a property scheme in which he invested collapsed, leaving him millions of pounds in debt. (credit:Getty Images)
MC Hammer(11 of11)
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One hit wonder MC Hammer's living beyond his means meant he was $13m in debt and filed for bankruptcy in 1996. (credit:Getty Images)