The ruling came after a mortgage adviser complained the TV advert, which promised settlements from £1,000 to more than £10,000, was misleading.
The Advertising Standards Authority said it had not seen evidence to support the pay outs promised: “We concluded the advertising claims that consumers could have claims ‘worth tens of thousands of pounds’ or that settlements could vary ‘from £1,000 to £10,000+’ were misleading and had not been substantiated.”
The regulator told Money Boomerang the advert could not appear again in the same form and they should not make claims for which it did not hold substantiation.
The claims management company argued it had calculated the figure by adding up monthly overpayments over many years. In this way, their own experience indicated consumers could claim several thousand pounds on products of much lower value. It also cited an expert who said claims of damages of up to £30,000 were likely.
However, the ASA found those cases had not yet been taken up and no decision on whether any damages should be awarded had been made.
Money Boomerang made headlines last year when the claims management company announced it would be launching an online and TV advertising campaign encouraging consumers to claim they had been mis-sold a mortgage.