According to the Financial Services Authority (FSA), advertising affects people’s debt management decisions, which is why misleading literature can be dangerous.
Vernon Everitt, FSA retail themes director, remarked: “Financial advertising has a massive influence on the decisions people make.
“So it must be clear, fair and not misleading…This is particularly the case in advertisements by mortgage brokers in the sub-prime market, where people are making one of the most important financial decisions of their lives. We need to see standards here rising – and fast.”
Around 930 people have complained to the FSA about advertising in the sub-prime sector, but the number of people who have had their debt management decisions affected by such advertising could be much higher.
Mr Everitt said that the authority fined firms that breached codes, adding that the FSA was looking at the debt advice given in the sector too.