Complainants challenged whether the TV ad was compliant with the rules for advertising financial products, while the ASA questioned whether claims to allow borrowers “flexibility to repay early, without penalties” presented rights given to consumers in law as a distinctive feature of its offer.
It is the second time Sunny has been under pressure from the ASA to remove an advert because of a failure to disclose the APR of its products. The ASA has told the provider, owned by Elevate Credit International, to ensure future ads that include a comparison or incentive display the representative APR.
The TV ad featured a voiceover which stated: “When Ben needed money to expand his market stall, he turned to Sunny. Because they give him the flexibility to repay early, without penalties… Discover Sunny.co.uk today. The flexible way to borrow from £100 up to £2500.”
In its response, Sunny said it did not believe the ad contained any trigger which would require the inclusion of an RAPR, which are required under rules set out by the Financial Conduct Authority (FCA).
It added that a feature that set it apart from many of its other competitors was that its customers were able to change their repayment terms, meaning they could repay early, in part or full, at any time. Sunny said that as interest was applied daily on outstanding loan amounts, where early repayment was made, less interest was paid than was due under the original agreement.
In its ruling the ASA said the advertisement’s references to flexibility and early repayment without penalties amounted to an incentive to apply for credit, meaning that the RAPR should have been included.
The ASA added: “We noted that the ability to repay early and without additional charge was a right offered by the Consumer Credit Act and, as such, not a distinctive feature of Sunny’s product. We therefore considered the ad misleadingly presented a right given to consumers in law as a distinctive feature of Sunny’s offer. We concluded the ad breached the Code.”
Sunny has been warned by the ASA not to present a consumer right enshrined in law as a distinctive feature of its product offer in any of its future advertising.
