The payday loan firm Wonga has been banned from using a TV advert that failed to tell consumers of its 5,853% annual interest rate.
The company, which recently announced that it would be writing off the loans of 330,000 customers who would not pass new affordability checks it has had to introduce, advertised its short-term loans using an animation of an elderly woman talking to an anxious-looking man jotting down figures on a napkin. In the advert, the woman told the man: You appear to be in a financial quandary, young fellow. At Wonga you choose exactly how much to borrow and for how long, adding you can even pay back early and save money. The web address wonga.com was on screen throughout the ad, and was displayed prominently as it ended.
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