Wonga TV ad banned for failing to show interest rate

The Advertising Standards Authority (ASA) has banned a TV advert by payday lender Wonga, after a complaint by a charity.

Citizens Advice argued the advert breached regulations by not revealing the loan’s interest rate – in which a man jots down figures on a napkin before checking on his phone calculator.

One of Wonga’s “pensioner puppets” is seen telling the man: “You appear to be in a financial quandary, young fellow”.

The ASA ruled that the advert must not appear again in its current form.

Wonga, has faced criticism for its high interest rates and debt collection tactics, and has not had any TV advertising since June.

The company has said that this ruling related to an old advert and there was an ongoing review of its marketing.

Wonga has recently announced it was writing off £220m of debts for 300,000 customers after putting new affordability checks in place.