Some TV spots downplay the financial implications of taking out credit, according to the ASA's chairman.
Regulators are planning to toughen up rules for personal loans firms who want to advertise on TV.
The Advertising Standards Authority (ASA) is readying itself for a crackdown on the promotion of reckless credit offers - and focus on the social responsibility of the promotional material - it stated in its annual report released today.
Commonly, these adverts go out on daytime TV and show that people who want to borrow can take out five-figure sums. Consumer groups have criticised the TV spots for downplaying the possible implications of taking out a high-interest loan - which include large repayment obligations and the risk that the customer could get locked in a debt spiral and eventually face action from bailiffs.
These concerns have increased over recent months, as rising unemployment limits the ability of many people to pay off their debts on a month-by-month basis. Moreover, recent figures from charity Credit Action show that the total personal debt mountain currently being faced by UK consumers is almost £1.5 trillion and that each household owes almost £10,000 in unsecured credit.
"The economic downturn makes it even more important to protect consumers from being misled," the ASA said in its report.
Speaking to the Independent newspaper, ASA chairman Lord Chris Smith picked out one example of the kind of advert the ASA would crack down on. He said: "In the Picture Financial Services ad, there was a housewife surrounded by a busy household of kids getting ready for school and the husband was coming down the stairs and grabbing a slice of toast. Meanwhile she was on the phone saying, 'So, a loan of £25,000? Yes, that will be all right. Thank you very much,' and putting the phone down."
He added: "I get irritated when I think consumers are being sold something in a very tempting way which is going to have huge financial and personal consequences for them. That to me is irresponsible advertising."
The personal loan industry in the UK is worth around £95 billion a year, figures cited by the newspaper suggest.
