Payday Loan Company ”Rapped” by Advertising Watchdog

Payday Loan Company Rapped by Advertising Watchdog

Payday loan company Allay Claims Ltd which operates as was just recently reprimanded by the ASA (Advertising Standards Authority) for launching a radio advertisement that exaggerated the speed and ease of claiming with the company.

Allay Claims Ltd had previously contested the complaint, but the ASA declined their request and warned them against using the advertisement in its current form. The advertising watchdog upheld the complaint stating that the ad was indeed misleading.

The ad made repeated claims on how simple it was for customers to claim compensation after facing difficulties when making payday loan repayments. The ad stated that Check My Payday Loan offers claims which are hassle-free, with no obligation checks.

The ad went further to state that customers just need to have grounds for a case; the company will do the rest. Customers simply needed to text claims and let handle the matter. What’s more; the ad created a sense of urgency by including the words; ”what are you waiting for?”


Advertising watchdog ASA received a complaint when a complainant discovered there were more requirements for launching a claim i.e., providing bank statements among other similar/supporting documentation.

In defense,’s broadcaster (acting on behalf of the lender) responded by stating that the additional information would be supplied to claimants after they sent a text. The broadcaster defended the ad by saying it clearly stated that a claimant must meet a specific criteria before their case was taken forward. The simple task of sending a text was meant to assess a claimant’s ground for launching a claim.

According to the adjudication, the ASA stated that most borrowers don’t know the process of launching claims for compensation against payday loan or short term loan lenders. The adjudication went further to state that it was accurate to conclude that people wouldn’t expect to do anything more after launching a claim via text given the ad’s wording. This decision was reached after considering’s defense of not stating the seemingly ”obvious”. According to the ASA, was found guilty of exaggerating the speed and ease of launching claims with them.

Main reasons behind the verdict

According to the ASA, the ad was deemed misleading because the process required claimants to offer more information than expected before a claim would be processed which was contrary to the ad claims of simply sending a text and letting handle the rest. According to the advertising watchdog, the ad didn’t create an accurate expectation of the entire claimant process i.e., on the need for more detailed examinations of bank statements and loan agreements of the claimant as well as a claimant’s correspondence with lenders.

Typical clams must follow a process requiring a claimant to offer more information. For a claim to be successful, a lender must also be found to have lent irresponsibly based on a claimant’s financial circumstances. Such a process requires a thorough examination of a claimant’s loan agreements, bank statements, and correspondence with their lender. The process can’t, therefore, be fast and easy according to the ASA which is why the watchdog declared the ad, misleading.


The ad can’t be broadcast in its original form again. According to the ASA, must make sure future ads don’t misleadingly exaggerate the speed and ease of processing claims with them.

In an effort to manage the situation, Allay Claims Ltd’s Director, Andie Stokoe, claimed that the radio ad was made by Capital and cleared to air by Radiocentre. He went on to state that Allay works extremely hard to ensure accurate communication between the company and its customers. In addition, Stokoe expressed his disappointment on the ASA ruling but promised to champion consumer rights address the concerns raised.


As a payday loan borrower, the above case highlights the importance of borrowing from reputable payday loan companies which offer accurate

information. Although the best payday lenders offer fast and reliable services, they offer full disclosure on everything including; fees and procedures. You should avoid lenders that make offers which are too good to be true. Also, pay attention to the legitimacy of a lender before choosing them. All reputable payday loan companies have an FCA authorisation number. You should also consider online reviews. Reputable lenders offer exemplary services which attract numerous positive reviews.

Mark Scott

Is the Company Director of Swift Money Limited. He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.