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The ASA ruling on a mailshot from Shop Direct Financial Services, part of the Littlewoods group,  stated, “Notwithstanding the inclusion of the typical APR, we considered that, by portraying an aspirational lifestyle purchased impulsively on credit, the ad was likely to be seen as encouraging young women to spend excessively on a credit account and, as such, was irresponsible.”

Joanne Wright, a personal insolvency expert at Begbies Traynor, an independent business rescue, recovery, and restructuring specialist, says that ASA’s stance is important not because it centres on one particular instance but rather because it highlights the very real need for consumers to take care when buying on credit.

“We have become a nation of debtors. It’s very easy for people to buy things they can’t afford and subsequently end up paying very high interest rates, only to find budgets will not stretch far enough to make the payments,” she adds.

Wright says that thousands of individuals around the country are learning this the hard way by having to declare themselves bankrupt or negotiate Individual Voluntary Arrangements (IVAs) with creditors to manage their way out of very difficult financial circumstances.

Begbies Traynor believes there is now a steadily growing awareness among consumers that  easily available credit encourages buying when you can’t afford it but there is still a long way to go before, for many, the temptations of that great new purchase are outweighed by the fear of debt.

Wright sees a number of factors helping to get the message across. The credit crunch is making people more conscious that some types of credit will be harder to come by and so may have a beneficial effect.

“The ASA’s ruling is, perhaps, indicative of shifting attitudes regarding where the balance lies between provision of credit as an aid to sales and responsible retailing,” Wright concludes.

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• Begbies Traynor