Borro speaks out on ASA advert ban

Borro speaks out on ASA advert ban




Asset lender Borro has given its response in regards to the recent ban of one of its TV advertisements.

Asset lender Borro has given its response in regards to the recent ban of one of its TV advertisements. 

An advert from Borro has recently been banned by the Advertising Standards Authority (ASA), this was after three viewers complained about whether it irresponsibly encouraged consumers to take out loans for non-essential purposes, such as holidays and leisure activities. 

Giving Borro’s side of the story, Paul Aitken, CEO and founder of Borro, said: “The advertisement in question ran for eight weeks only, and was removed from the air in March this year following an internal management decision, and prior to any communication with the ASA.”

Paul added: “But, following those conversations, we will ensure Borro’s future marketing communications are fully compliant with the necessary advertising guidelines.”

Clearcast responded on the advertiser's behalf, stating that although holidays can be considered as a frivolous product, consumers would not be at risk if they were securing a loan against relatively small assets, such as a watch, where as in other forms of lending consumers' property or salary might be at risk. They believed the ad was not irresponsible because of the lesser risk and relatively low APR.

The advertisement in question, was for commercial loans, which featured a man and a woman sitting on a sofa in their home, where the man stated, "My mum gave me this incredible watch," and the woman stated: "It can do so many amazing things". The man said: "Help start a business, pay school fees", and the woman stated, "Fly us to the Caribbean". On-screen text then stated "Minimum loan £1,000, maximum £1 million. Subject to valuation. Over 18's only. Conditions apply. Representative APR 69 per cent. Money within 24 hours of valuation.”

The man then stated: "That's 'cause we send it to Borro.com, and get money for the things we really need."  A voiceover then dictated: "With Borro, you can secure a loan using assets like jewellery, art, antiques. It's fast, easy, and there's never a credit check." The man was then shown helping his mother remove her coat, and she stated, "Oh, I see you like your watch then". He smiled to the camera and stated, "You have no idea.”

The ASA argued that taking out a loan was a step that should only be undertaken following careful consideration and that marketers should take care to advertise those products responsibly.

Therefore, it was stated that the ad must not appear in its current form and Borro was informed to ensure that future marketing communications did not advertise loans in an irresponsible way.
 

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