UK Statutory Instrument 2010 United Kingdom

Consumer Credit (Advertisements) Regulations 2010

What this means for your business

5 obligations
1 penalties
1 guides
Enforced by
FCA
Applies to
United Kingdom
On this page
5 compliance obligations, 1 practical guide
Read full text on legislation.gov.uk

What you must do

5 compliance obligations under this legislation.

Management duties 5

Avoid prohibited expressions in credit advertisements

When you promote credit products you must not use terms such as ā€œoverdraftā€, ā€œinterest freeā€, ā€œno depositā€, ā€œloan guaranteedā€, ā€œpreā€‘approvedā€, ā€œgiftā€, or ā€œweekly equivalentā€ unless the specific exceptions listed in the regulation apply. Check your advertising copy before it goes live to make sure none of the restricted expressions are used.

Trader/Business s.10 CMA When creating or publishing a credit advertisement

Disclose security requirements in credit adverts

Unlimited fine

If you advertise a credit product that needs security (or could need it), you must tell potential borrowers that security is required and explain what kind of security it is. This means every advert, flyer or online copy must include a clear statement about the security and its nature, so customers are not misled.

Trader/Business s.9 CMA When the credit facility being advertised requires or may require security

Display APR correctly in credit advertisements

When you promote a credit product, you must show the Annual Percentage Rate (APR) exactly as ā€œ%APRā€. If the rate can change, add the word ā€œvariableā€. If you are using a representative APR, put the word ā€œrepresentativeā€ before it. This ensures consumers see clear, comparable cost information.

Trader/Business s.7 CMA Whenever you create or publish an advertisement for a credit product

Ensure credit advertisements meet regulatory requirements

If your business publishes any credit advertisement, you must make sure it follows every rule set out in the Consumer Credit (Advertisements) Regulations. This means checking the content, format and required disclosures before the ad goes live, so you avoid breaching the regulations.

Trader/Business s.2 CMA Whenever you cause a credit advertisement to be published

Make credit ads clear, legible and show advertiser name

Whenever you promote credit products, your ads must be written in plain language that anyone can understand, be easy to read (or hear clearly if spoken), and clearly display who is advertising. This means you need to check the wording, design and branding of every credit advertisement before it is published.

Trader/Business s.3 CMA

Penalties for non-compliance

1 penalty under this legislation. 1 carry an unlimited fine.

Unlimited fine

Disclose security requirements in credit adverts

Unlimited fine

s.9 Penalises: Disclose security requirements in credit adverts

Practical guidance

Our guides explain how to comply with the requirements above.

Comply with credit advertising rules

How to advertise consumer credit products compliantly under FCA rules. Covers representative APR requirements, triggered information, social media advertising, risk ā€¦

Sections and provisions

13 classified provisions from this legislation.

5 Duties 1 Offences and penalties 5 Exemptions

Duties 5

  • s.2 Duty to comply
  • s.3 General requirements
  • s.7 APR
  • s.9 Security
  • s.10 Restrictions on certain expressions in credit advertisements A credit advertisement

Offences and penalties 1

  • s.12 Transitional provisions

Exemptions 5

  • s.4 Content of advertisements
  • s.5 Representative Example
  • s.6 Other advertisements requiring representative APR
  • s.8 Ancillary services
  • s.11 Exclusions