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Facebook targeted by dodgy loan adverts
- — 14 May, 2008 11:26
Facebook is accused of publishing rule-breaking adverts that push expensive loans to young people, it has emerged.
According to UK debt charity Credit Action, adverts on the social networking site offering cheap loans, in particular those secured against a salary or car, break UK advertising regulations.
"Lots of credit companies, especially payday and logbook loans companies, are using the medium [social networking] to advertise their products. It is such a popular method because they can target young people with whom the site is so popular," commented the charity.
Some of the Facebook adverts contravene UK credit advertising regulations because they fail to give details of interest rates.
Malcolm Hurlston Chairman of Credit Action's board of trustees, explained that while some adverts do include the rates of APR "they are only in the frequently asked questions section, and not prominently on the advert, which is what the rules require".