Payday lender used Tory Brexit chaos to encourage high cost loans

A pay day lender has had an advert banned after it used Brexit chaos to encourage food stockpiling.

Referring to concerns about food shortages after Brexit, Peachy told customers it would be worth buying extra food to be prepared.

The lender sent an email to subscribers which included a link to a promotional loan if customers pressed a button which read: "in case of emergency press here". 

The ad was interpreted as playing on financially vulnerable people's fears over Brexit to encourage the use of crippling high cost pay day loans to stockpile.

Pay day loans typically target those on low income with few assets, causing many to fall deeper into debt as they try to pay back huge interest rates. 

"No one really knows what's going on with this whole Brexit malarkey… and some say it could affect the amount of food available. 

"We do not want to believe that Brexit will impact the amount of food available but it's still a good idea to have a little stockpile ready.

"That way you're always prepared for the worst… Things can pop up even when you think everything is going swimmingly," the advert read. 

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Peachy said it's reference to Brexit was "light hearted" and topical, reflecting different situations people might prepare for. 

The Advertising Standards Authority banned the ad after they recieved a consumer complaint.

The watchdog said it was "irresponsible".

"We considered that the ad's references to possible food shortages and the stockpiling of food were likely to play on some people's concerns regarding Brexit, including financially vulnerable consumers who were already struggling or worrying about their financial situation, " they added. 

Peachy has apologised and agreed to abide by the ruling.

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