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Kerry Katona payday loan advert banned by watchdog

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Kerry Katona has been celebrating her engagement

Kerry Katona has been celebrating her engagement

PA

Kerry Katona has been celebrating her engagement

An advertisement for payday loans featuring TV personality Kerry Katona has been banned in part for irresponsibly suggesting the cash could help fund a celebrity-style lifestyle.

The ad for PDB UK, trading as Cash Lady, featured Katona saying: “We've all had money troubles at some point, I know I have. You could see your bank and fill in loads of forms, but is there an easier way to get a loan... so if you need extra cash go to www.cashlady.co.uk. Fast cash for fast lives.”

The ad drew 29 complaints that it was irresponsible because it focused on Katona's financial problems and encouraged people in similar situations to borrow money.

The Advertising Standards Authority (ASA) also challenged whether the ad was misleading and irresponsible because it promoted itself as an alternative to banks while offering an APR in excess of 2,000%.

Cash Lady said Katona was selected as its “face” because she had experienced money troubles in the past and their customers would be able to relate to her.

It said loans were limited to £300 and were therefore aimed at those experiencing relatively low-level short-term difficulties.

However, the ASA said references to Katona's financial problems in the ad “had potential to encourage vulnerable viewers with financial problems...”

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