Fair Trading

The Credit Advertising Rules

Legislation

Credit advertisements must comply with the Consumer Credit (Advertisements) Regulations 2004.

Content of adverts - "IF" and "THEN"

If any of the items appearing in the "IF" column appear in an advert then ALL the items in the "THEN" column must also appear.

If

Then

Amount of repayments

Amount (or percentage) of other payments or charges (e.g. brokers fees)

Total amount payable

Amount of credit
Cash price
Advance payment
Repayments (number, amount and frequency)
Other payments
Total amount payable
Postal address

When the APR is required

The typical APR is required if any of the following appear in the advert:

Repayments (number/frequency /amount)
Information on or amount of any other payments (brokers fees)
Total amount payable
Any other rate of charge
That credit is available on favourable terms or with an incentive
(low rate finance/no deposit)
Any indication* that credit is available to those who might find access to credit difficult ("CCJ's no problem")

*Note that the term "indication" can include a trading name or website address

Typical APR

It is the APR at or below which you expect to do 66% of your business as a result of the advert.

Prominence of the APR

In practical terms, it has to be of greater prominence than any other rate of charge, indication* or incentive AND at least one and a half times the size of any of the remaining items of credit information that have been mentioned in either of the tables above (except the address).

Layout

Most credit information now has to appear together and, unless the regulations state otherwise, with equal prominence. If you have a website, then customers should not have to click on any links to see all the necessary information. All information in the advert has to be "easily legible" in the context in which it appears.

If you wish to quote payments for a number of different items in an advert, then ALL the credit information (APR, number of payments, total amount payable etc) has to appear for each item as well as the typical APR for the advert as a whole. You can no longer use small print at the bottom of an advert.

Other Matters

The rules on quoting weekly payments or using the term "interest free" have not changed.

You can no longer use "split" credit adverts on your premises.

The trading name that appears on your credit licence must appear in all credit adverts.

Further free advice on this issue or any other area of legislation enforced by Trading Standards can be obtained on 01738-476476.