Why on earth did the Katona pay-day loan ad get banned?

"Fast cash for fast lives" comes under ASA's watchful gaze.

Ex Atomic Kitten star Kerry Katona recently made headlines once again for being a minor celebrity without much cash. This time, the Advertising Standards Agency (ASA) has banned payday loan company Cash Lady’s advert starring Katona, as it could be seen as "irresponsible".

Payday loan companies, such as Cash Lady or Wonga, offer high interest loans intended to be paid back on the day of your next pay check. Cash Lady offers loans of up to £300 a month with an annual percentage rate of 2,760. For example, if you borrow £200 from Cash Lady for 28 days you will pay back £258 on payday.

It’s no secret that payday loans are often seen as a slippery slope; borrowing £200 and paying back over 125 per cent of that can’t exactly be seen as responsible money management. However, it is also true that sometimes payday loans may be, to those who use them, the only way out of a sticky situation.

Why did the ASA ban the advert, I hear you cry. Everyone knows the sky high nature of payday loan interest rates and that Kerry Katona has herself had money problems (she was declared bankrupt in 2008 for failing to pay her tax bill). Cash Lady claimed they chose Katona because the public could relate to her, making her a face a beacon of hope.

However, the problem the ASA had with the advertisement featuring Katona wasn’t so much a problem with the “star” but with the branding of Cash Lady. The advert stated that the payday loan company provides "fast cash for fast lives", which may purport to the public that the payday loan option isn’t only for emergencies but also can be used to fund a "fast life," like that of Katona’s.

Advertising is often sexy, it’s often weird and quirky, and it needs to be eye catching but most of all it needs to appeal to the audience. "Fast cash for fast lives" certainly appeals to those who need money to quickly sort out their problems – however, with the face of a celebrity one can see how the ASA could see it as problematic to allow an advert that showed a short term solution to what is sometimes a more long term problem with celebrity endorsement.

I doubt it will be long until payday loan companies are asked to attach a warning to their adverts akin to those on alcohol adverts. After all, payday loans can become an addiction. 

Kerry Katona. Photograph: Getty Images

Katy Maydon is a journalist for Retail Banker International

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PMQs review: Theresa May shows again that Brexit means hard Brexit

The Prime Minister's promise of "an end to free movement" is incompatible with single market membership. 

Theresa May, it is commonly said, has told us nothing about Brexit. At today's PMQs, Jeremy Corbyn ran with this line, demanding that May offer "some clarity". In response, as she has before, May stated what has become her defining aim: "an end to free movement". This vow makes a "hard Brexit" (or "chaotic Brexit" as Corbyn called it) all but inevitable. The EU regards the "four freedoms" (goods, capital, services and people) as indivisible and will not grant the UK an exemption. The risk of empowering eurosceptics elsewhere is too great. Only at the cost of leaving the single market will the UK regain control of immigration.

May sought to open up a dividing line by declaring that "the Labour Party wants to continue with free movement" (it has refused to rule out its continuation). "I want to deliver on the will of the British people, he is trying to frustrate the British people," she said. The problem is determining what the people's will is. Though polls show voters want control of free movement, they also show they want to maintain single market membership. It is not only Boris Johnson who is pro-having cake and pro-eating it. 

Corbyn later revealed that he had been "consulting the great philosophers" as to the meaning of Brexit (a possible explanation for the non-mention of Heathrow, Zac Goldsmith's resignation and May's Goldman Sachs speech). "All I can come up with is Baldrick, who says our cunning plan is to have no plan," he quipped. Without missing a beat, May replied: "I'm interested that [he] chose Baldrick, of course the actor playing Baldrick was a member of the Labour Party, as I recall." (Tony Robinson, a Corbyn critic ("crap leader"), later tweeted that he still is one). "We're going to deliver the best possible deal in goods and services and we're going to deliver an end to free movement," May continued. The problem for her is that the latter aim means that the "best possible deal" may be a long way from the best. 

George Eaton is political editor of the New Statesman.