Background
Summary of Council decision:
Six issues were investigated, all of which were Upheld.
Ad description
A paid-for internet search ad and a website for Step Debt Support seen in July 2020: a. The paid-for internet search ad was headed “Step to Change – Free Government Debt Support – Step into Change”. Underneath, text stated the website address https://stepdebtsupport.co.uk/step-change followed by “Ad” and “Step into Change. Check Online To See If You Qualify To Reduce Debts … Best Advice Policy – Friendly Debt Advice – Free Advice – 5* Customer Feedback – Types: Protection From Creditors, Lower Monthly Payments, Freeze Interest & Charges”. The heading “Reduce Your Debt” appeared along with several others below. It was followed by text which stated “Lower Your Debt Today. Find Out If You Qualify For An IVA”.
b. The website www.stepdebtsupport.org.uk showed a photograph of a woman cuddling a small child. Large text alongside stated “Steps to change your debt problems – 1 – Use our Debt Solution Finder below – 2 – Complete the 4 simple questions – 3 – Get an instant idea how to get help”. A “Get started now” link appeared below. On a page headed “Debt Solution Finder”, text stated “What is the total value of your debt?” followed by three boxes to choose from: less than £5,000; £5,000 to £20,000 and more than £20,000. More text stated “Whatever your circumstances, help is available – You are not alone – Dealing with debt can be stressful, try not to worry as every debt problem can be solved – Try our debt solution finder – If you’re worried that you need help with your finances then you should try our 60-second debt test. By answering a few simple questions we’ll be able to tell you which solutions are best for you – Free debt advice – to help with immediate debt problems such as council tax, bailiff’s [sic], bills and loans to give you breathing space. We’ll help reduce your debt so you can become debt free in the quickest way possible – We’ll help take care of everything – from speaking with your lenders, paperwork and getting things set up”. A “Debt solution finder” link appeared below.
The heading “Families we have helped” was followed by three testimonials, each with five star symbols above them, over a photograph of a family walking in the countryside. Text underneath stated “4.9 / 5 Rating” followed by a five-star symbol.
A screen which appeared after enquiring contained text which stated “Thank you for contacting us. Your enquiry has been sent. You’ve qualified for a number of repayment options to help you become debt free. One of our advisors will review your information and contact you from an 0330 number to discuss your options for dealing with your debts – What Next? When we have a chat about your situation and your options, you can be rest assured that we have your best interests at heart. It is important that we advise you responsibly and objectively. We will let you know of all the options available to you that are the best for addressing your debts. All of our advice is completely confidential. You are under no obligation by getting advice from us – Our vision & Promise - We speak without jargon – We help people from all walks of life who benefit from our balanced and fair approach – We are open, honest and helpful – We will help you to understand your options and offer you the most suitable solution should we be able to provide it”.
Issue
The Money and Pensions Service challenged whether:
1. Ad (a) misleadingly suggested associations with the StepChange Debt charity and the Government;
2. the references to debt advice in ads (a) and (b) were misleading, because Step Debt Support was not authorised by the FCA to provide debt counselling and so could only give advice in “reasonable contemplation of an IVA”, and whether the claim “We’ll help take care of everything” and similar in ad (b) were misleading, because they suggested Step Debt Support provided the service themselves and did not make clear that they passed on leads;
3. claims which included “Lower your debt today” in ad (a) and “Steps to change your debt problem” in ad (b) exaggerated the speed and ease with which debts could be reduced; and
4. the references to “5* Customer Feedback” in ad (a) and “4.9 / 5 Rating” in ad (b) were misleading and could be substantiated.
The ASA challenged whether:
5. the references to “Free” in ads (a) and (b) were misleading, because fees applied to an IVA; and
6. the ads made clear the risks associated with an IVA.
Response
National Direct Service t/a Step Debt Support did not respond to the ASA’s enquiries.Assessment
The ASA was concerned by Step Debt Support’s lack of response and apparent disregard for the Code, which was a breach of CAP Code (Edition 12) rule 1.7 1.7 Any unreasonable delay in responding to the ASA's enquiries will normally be considered a breach of the Code. (Unreasonable delay). We reminded them of their responsibility to respond promptly to our enquiries and told them to do so in future.
1. Upheld
We acknowledged that paid-for search ads were likely to use abbreviations or incomplete sentences to make the most of the space available. We considered that consumers who made a search for help with debt would be shown a range of results to choose from and that a perception that an advertiser had an association with the Government or the StepChange Debt charity was likely to provide reassurance and encourage consumers to enquire further with that particular advertiser. We considered consumers were likely to interpret the wording “Step to Change – Free Government Debt Support – Step into Change”, which was a prominent heading at the top of the ad, to mean that there was some kind of association between the UK Government, the StepChange Debt charity and Step Debt Support, perhaps that they had approved or endorsed Step Debt Support to help with debt matters. Because Step Debt Support had not demonstrated that that was the case, we concluded that the ad was misleading.
On that point ad (a) breached CAP Code (Edition 12) rules 3.1 3.1 Marketing communications must not materially mislead or be likely to do so. (Misleading advertising) and 3.50 3.50 Marketing communications must not display a trust mark, quality mark or equivalent without the necessary authorisation. Marketing communications must not claim that the marketer (or any other entity referred to), the marketing communication or the advertised product has been approved, endorsed or authorised by any public or other body if it has not or without complying with the terms of the approval, endorsement or authorisation. (Endorsements and testimonials).
2. Upheld
We considered wording which included “Best Advice Policy – Friendly Debt Advice – Free Advice” in ad (a) and “Use our Debt Solution Finder below” in ad (b) suggested that Step Debt Support was authorised to provide debt counselling, i.e. that they would consider an individual’s situation in the context of the full range of options available for dealing with a debt and advise on which one was the most appropriate. However, Step Debt Support were not themselves qualified to provide that and instead could only put someone forward for an IVA. Because Step Debt Support were not qualified to make a recommendation from all possible options for dealing with a debt, we concluded that the ads were misleading.
We considered consumers would understand “We’ll help take care of everything”, in the context of an ad for an organisation that helped with debt issues, to mean that Step Debt Support would deal with the entire process, from start to finish, of an enquirer’s debt problems. We noted that, further into the website once enquirers had begun inputting their details, it was possible to click on a weblink to Step Debt Support’s terms and policies. There, text stated that Step Debt Support “… may be working closely with a number of specialist companies that offer a range of financial products … We do not provide any form of financial advice or knowledge so in order to best resolve your financial situation and [sic] you may be contacted by one of these specialist companies, if … they may be able to help you. For this we may receive a one-off financial payment as an introduction fee”. It was not possible for enquirers to see that information before they began inputting their details. Even once they had, we considered many enquirers would not expect to need to read a company’s terms and policies to find out that the company was simply passing on details to third parties rather than providing a complete debt service themselves.
We therefore considered it was not clear that the service was not provided by the advertiser and that details were passed on to a third party. We therefore concluded that the ad was misleading. On that point ads (a) and (b) breached CAP Code (Edition 12) rules 2.3 2.3 Marketing communications must not falsely claim or imply that the marketer is acting as a consumer or for purposes outside its trade, business, craft or profession; marketing communications must make clear their commercial intent, if that is not obvious from the context. (Recognition of marketing communications) and 3.1 3.1 Marketing communications must not materially mislead or be likely to do so. (Misleading advertising).
3. Upheld
We considered “Lower your debt today” in ad (a) and “Steps to change your debt problems – 1 – Use our Debt Solution Finder below – 2 – Complete the 4 simple questions – 3 – Get an instant idea how to get help” in ad (b) suggested that, by contacting Step Debt Support, enquirers would be able to begin to resolve their debt problems immediately. In reality, however, Step Debt Support would only pass on an enquirer’s details to a third party, after which creditors would need to agree to a client taking out an IVA and a payment schedule would need to be drawn up. We considered the claims over-simplified the process and exaggerated the speed and ease with which debts could be reduced. We therefore concluded that the ads were misleading.
On that point ads (a) and (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
4. Upheld
We noted that in ad (a) “5* Customer Feedback” appeared alongside the text “Best Advice Policy – Friendly Debt Advice – Free Advice”. In ad (b), “4.9/5 Rating” appeared above a group of five “star” symbols reminiscent of the symbols used on review websites. We considered a favourable review or rating by a third party was likely to encourage consumers to make further enquiries with an advertiser. We considered consumers would expect the reviews or ratings to reflect the genuine views of customers who had received advice from Step Debt Support and that they needed to know what the reviews or ratings related to and how they had been obtained in order to make an informed decision on how much confidence they could place in the reviews or ratings. Because Step Debt Support had not demonstrated that the reviews and ratings reflected the genuine views of customers who had received advice from Step Debt Support, we concluded that the ads were misleading.
On that point ads (a) and (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
5. Upheld
We considered consumers would interpret the “free” claims to mean there would be no charge for the advice and assistance they might receive for dealing with their debt as a result of making an enquiry. In reality, while there might be no charge for the initial enquiry and assessment, charges would be payable by the customer if they went on to take out an IVA, which was the form of debt support Step Debt Support would put them forward for.
We acknowledged that small print some way into ad (b) stated, alongside company information and a worked example of an IVA, “There may be fees included. However, you will be made aware of those before you contract into any agreement”. However, that text was smaller, denser and much less prominent than the preceding sections of text and visuals, where “Free Service” appeared prominently in a ticked shield symbol and where “Free debt advice – to help with immediate debt problems such as council tax, bailiff’s [sic], bills and loans to give you breathing space. We’ll help reduce your debt so you can become debt free in the quickest way possible” appeared prominently alongside other information about Step Debt Support’s service. There was no mention of fees at all in ad (a). We therefore concluded that the references to “Free” in ads (a) and (b) were misleading.
On that point ads (a) and (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
6. Upheld
There was no mention in ad (a) of any risks being associated with an IVA. Ad (b) showed photographs of happy family groups, with large, clear text and visuals which stated “Steps to change your debt problems – 1 – Use our Debt Solution Finder below – 2 – Complete the 4 simple questions – 3 – Get an instant idea how to get help” above a “Get started now” link. This was followed by other sections which included the “Debt Solution Finder,” explanatory text, testimonials and company information. As stated above, the company information section included a reference to fees, but there was no mention there or anywhere else about any risks being associated with an IVA. We considered the ad needed to make consumers aware that there were risks associated with the form of debt support Step Debt Support would put them forward for, an IVA, before making an enquiry.
We therefore concluded that the ads did not make clear the risks associated with an IVA. On that point ads (a) and (b) breached CAP Code (Edition 12) rules
3.1
3.1
Marketing communications must not materially mislead or be likely to do so.
and
3.3
3.3
Marketing communications must not mislead the consumer by omitting material information. They must not mislead by hiding material information or presenting it in an unclear, unintelligible, ambiguous or untimely manner.
Material information is information that the consumer needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.
(Misleading advertising).
Action
We referred the matter to CAP’s Compliance team. The ads must not appear again in the forms complained of. We told National Direct Service t/a Step Debt Support to ensure their ads did not mislead by suggesting associations with the StepChange Debt charity or the UK Government; by suggesting that they were qualified to provide debt counselling or that they did anything more than pass on leads; or by exaggerating the speed and ease with which debts could be reduced. We also told them to ensure they could demonstrate that any reviews and ratings quoted in their ads reflected the genuine views of customers who had received advice from Step Debt Support; that they did not suggest that there was no charge for an IVA; and that their ads made clear the risks associated with an IVA.
