The OFT has imposed requirements on Reset Finance Ltd to ensure that it complies with credit advertising regulations.
Reset operates lead-generating websites that advertise products including sub-prime credit. Through these websites, the company introduces borrowers to lenders.
The OFT monitored the content of the firm’s websites and identified a number of advertisements that it considered breached the Consumer Credit (Advertisements) Regulations 2004.
The imposition of the requirements means that Reset’s future credit advertisements must comply fully with the Consumer Credit (Advertisements) Regulations 2004. They must include the Typical Annual Percentage Rate (typical APR) in circumstances where this must be legally stated and ensure that the typical APR is given greater prominence than certain other information in the advertisements.
They must also clearly state whether security for the loan may comprise a mortgage or charge on the debtor’s home.
The OFT says will monitor Reset’s compliance with the requirements. Failure to comply can lead to further action by the OFT, including the imposition of fines. The credit regulator says Reset fully co-operated during its investigation.
The OFT is also warning other lead generator and price comparison sites with advertising that leads to credit deals that they act as credit brokers and must comply fully with the Consumer Credit Act 1974 and the Regulations.
Ray Watson, OFT director of consumer credit, said: “Lead generator and price comparison websites are an increasingly important means for putting potential borrowers in contact with lenders.