The Central Bank of Ireland plays a vital role in regulating advertising for financial services and products. Their guidelines, outlined in the Consumer Protection Code 2012, set the standards that all lenders must follow, including Close Brothers Motor Finance. This regulation also affects motor dealers who act as brokers for these lenders.
But it’s not just the Central Bank of Ireland that sets rules. All marketing communications also need to adhere to the Advertising Standards Authority (ASA) Code. This means that every piece of promotional material has to meet high standards of fairness, clarity, and transparency expected in the industry. This article will share some important tips and guide you to useful resources to support your content.
What counts as advertising?
Advertising today goes way beyond the traditional TV, radio, print, direct marketing, promotional materials and outdoor advertising like billboards, window displays, and ads on public transport. The scope's expanded massively, and you should consider adding the following platforms to the list; online advertising, including banners, pop-ups, video streaming, influencer marketing, SMS text adverts, social media ads, micro-blogging, comment feeds on social media sites, internet discussion sites, search engine sponsorships and so much more!
Guidance on the Advertising Requirements of the Consumer Protection Code 2012.
The overriding requirement
At the heart of the requirements for advertising financial services and credit is fairness to the customer. All promotional communications for financial services should be prepared with care and the conscious aim of ensuring that members of the public fully grasp the nature of any commitment they may enter into as a result of responding to a marketing communication. Adverts must be clear, fair, accurate, and not misleading. Headline claims and offers must be balanced with information so consumers can make informed choices
Compliance
It is crucial for a dealer’s board or senior management, the compliance officer, marketing team, and external agencies to collaborate closely and ensure the finalised advertisement adheres to the rules outlined in the Consumer Protection Code 2012.
Avoid use of terms such as ‘leading’, ‘best value’ or having ‘access to all lenders’
To comply with Provision 9.2 (a) and (b) of the Code and avoid misleading consumers with claims like 'leading' or 'best value', any such statements in an advertisement for a regulated entity must be factually accurate, and the source should be cited as recommended by the Central Bank
Advertising credit agreements that mention an interest rate or cost must include standard details as specified in the European Communities (Consumer Credit Agreements) Regulations 2010.
This standard information must use a representative example and clearly show:
- The total amount of credit.
- The borrowing rate (fixed or variable or both) and details of any charges included in the total cost of the credit to the consumer.
- The annual percentage rate of charge (except in the case of an overdraft).
- If the credit is in the form of deferred payment for a specific good or service, the cash price and the amount of any advance payment.
- The duration of the credit agreement (if applicable) The total amount that you are required to pay and the amount of the instalments (if applicable).
