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Secured Debt Financial Products

Volume 447: debated on Wednesday 14 June 2006

To ask the Secretary of State for Trade and Industry whether his Department is taking steps to restrict celebrity endorsement of secured debt financial products. (75014)

The laws concerning the advertising of financial products have recently undergone a thorough review. While they do not specifically deal with celebrity endorsement of products, the Consumer Credit (Advertisements) Regulations 2004 provide that advertisements must be clear, fair and not misleading. In the case of a loan secured on a debtor’s home, that advertisement must include a health warning regarding the consequences of not keeping up with repayments. Rules emanating from the Financial Services and Markets Act 2000, under which first charge mortgages are regulated, contain similar provisions concerning financial promotions.