Wonga ad banned after implying 5,853% APR was irrelevant

The Advertising Standards Authority (ASA) has banned an advert by payday lending company Wonga after receiving 31 complaints.

The ASA said that the ad was confusing for the public about interest rates that applied to loans.

The ad featured a conversation between the famous Wonga puppets about the costs of taking out a loan from the company.

In the ad, the puppets said: “Right, we’re going to explain the costs of a Wonga short-term loan.

“Some people think they will pay thousands of per cent of interest. They won’t of course - that’s just the way annual rates are calculated. Say you borrowed £150 for 18 days, it would cost you £33.49.”

The ASA upheld the complaints and said it was misleading by implying a representative APR of 5853% was “irrelevant”.

Wonga said it was not fair or reasonable that the ad had been viewed as misleading.

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