Credit Companies Causing Stir on Facebook
There’s a story hitting the papers today about credit companies using Facebook to target young consumers. The BBC reports that charity Credit Action claim adverts promising cheap loans for people with poor credit are appearing regularly on the social networking site, many of which are breaking advertising regulations. The products being highlighted as particularly worrisome are promoting ‘pay day loans’ and ‘logbook loans’ – loans which appeal highly to younger people.
The charity apparently made a complaint to the Office of Fair Trading, and is now asking users of social networks to warn them about any other adverts which break the rules.
A spokesman said: "Social networking sites, Facebook in particular, have become hugely popular in recent times, and not just with users. Lots of credit companies, especially payday and logbook loans companies, are using the medium to advertise their products. It is such a popular method because they can target young people with whom the site is so popular."