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

Photo: Getty
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The Liberal Democrats are back - and the Tories should be worried

A Liberal revival could do Theresa May real damage in the south.

There's life in the Liberal Democrats yet. The Conservative majority in Witney has been slashed, with lawyer and nominative determinism case study Robert Courts elected, but with a much reduced majority.

It's down in both absolute terms, from 25,155 to 5,702, but it's never wise to worry too much about raw numbers in by-elections. The percentages tell us a lot more, and there's considerable cause for alarm in the Tory camp as far as they are concerned: the Conservative vote down from 60 per cent to 45 per cent.

(On a side note, I wouldn’t read much of anything into the fact that Labour slipped to third. It has never been a happy hunting ground for them and their vote was squeezed less by the Liberal Democrats than you’d perhaps expect.)

And what about those Liberal Democrats, eh? They've surged from fourth place to second, a 23.5 per cent increase in their vote, a 19.3 swing from Conservative to Liberal, the biggest towards that party in two decades.

One thing is clear: the "Liberal Democrat fightback" is not just a hashtag. The party has been doing particularly well in affluent Conservative areas that voted to stay in the European Union. (It's worth noting that one seat that very much fits that profile is Theresa May's own stomping ground of Maidenhead.)

It means that if, as looks likely, Zac Goldsmith triggers a by-election over Heathrow, the Liberal Democrats will consider themselves favourites if they can find a top-tier candidate with decent local connections. They also start with their by-election machine having done very well indeed out of what you might call its “open beta” in Witney. The county council elections next year, too, should be low hanging fruit for 

As Sam Coates reports in the Times this morning, there are growing calls from MPs and ministers that May should go to the country while the going's good, calls that will only be intensified by the going-over that the PM got in Brussels last night. And now, for marginal Conservatives in the south-west especially, it's just just the pressure points of the Brexit talks that should worry them - it's that with every day between now and the next election, the Liberal Democrats may have another day to get their feet back under the table.

This originally appeared in Morning Call, my daily guide to what's going on in politics and the papers. It's free, and you can subscribe here. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.