Since April 1 when the regulator took control of the sector it has reviewed 1,500 promotions which resulted in 227 investigations of adverts which were non-compliant.
A quarter of these cases related to advertisements for high-cost short-term credit, with many not prominently displaying a risk warning or representative APR.
Digital media, such as website, emails and text messages, accounted for 80% of the consumer credit cases to date.
Clive Adamson, director of supervision at the FCA, said: “It is important that all firms ensure financial promotions are fair, clear and not misleading so that customers are able to make informed decisions.
“We are disappointed to see standards fall short of what we expect, particularly in the consumer credit space, four months from when we took over regulation.
“We believe that firms in this sector can do more to ensure financial promotions meet the standards we would expect and will continue to monitor performance in this area.”
Speaking at the FCA’s inaugural annual public conference Martin Wheatley said much needed change was needed in the sector and continual improvement of standards was necessary.
Citizens Advice led a successful campaign in July to have the adverts of three payday loan companies banned for being either misleading or irresponsible. The adverts were printed on sandwich wrappers distributed across the street from a university campus and sent to consumers by text message.
The FCA said it will continue to monitor financial promotions and take action where required to drive up standards.
The regulator acts on complaints received from the public, the Advertising Standards Authority and other organisations.
