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Abbey And Advertising Standards


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HOLA441
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HOLA442
I took the step of complaining to the ASA about an advert I saw for an Abbey savings product, proclaiming "NO RISK".

I'd like to encourage others to do likewise if they've seen the advert. It's a blatant lie and I'm fed up of this kind of thing.

Click below...

http://www.asa.org.uk/asa/how_to_complain/complaints_form/

Stock peddlers have to tell punters that stock prices can go up or down.

IMO any company engaged in selling debt in relation to houses should give a similar warning but with a slight difference:

Borrowers are warned that house prices can go up as well as down and recent trends are indicating we are in a down market. If you proceed with the loan to make a house purchase you are likely to lose equity for the foreseeable future. If you decide to proceed with the loan you must sign and complete a disclaimer and prove that you have taken independent advice as we do not want our ar*es sued if you go into reposession.
Edited by Realistbear
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HOLA443
I took the step of complaining to the ASA about an advert I saw for an Abbey savings product, proclaiming "NO RISK".

I'd like to encourage others to do likewise if they've seen the advert. It's a blatant lie and I'm fed up of this kind of thing.

Click below...

http://www.asa.org.uk/asa/how_to_complain/complaints_form/

This is counterproductive, the greater the number of people who find their lives blighted by the usurers and their agents, the sooner the whole stinking edifice will be brought crashing down. There is no advantage in trying to delay this and much to be lost in the meantime.

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HOLA444
This is counterproductive, the greater the number of people who find their lives blighted by the usurers and their agents, the sooner the whole stinking edifice will be brought crashing down. There is no advantage in trying to delay this and much to be lost in the meantime.

I see no problem with usury - provided it is open and transparent and you have a choice wether to enter into it.

Claiming risk free investment is a lie.

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  • 5 weeks later...
4
HOLA445
I took the step of complaining to the ASA about an advert I saw for an Abbey savings product, proclaiming "NO RISK".

I'd like to encourage others to do likewise if they've seen the advert. It's a blatant lie and I'm fed up of this kind of thing.

Click below...

http://www.asa.org.uk/asa/how_to_complain/complaints_form/

Been thinking this too. here is my complaint sent to the ASA...

"No RIsk" in the TV advert is a misnomer. There is counterparty risk; Abbey / Santander may not be able to meet their obligations (a la Northern Rock).

This may be significant for those investing more than is guaranteed by the Government insurance of £35k.

Also there are the legal complexities of what happens if Abbey goes under and one has (say) a mortgage with them; the savings product may be used to offset against the mortgage.

There are also other risks invlolved; risks such as inflation during the period of investment eroding purchasing power etc.etc.

Stating "NO RISK" should not be allowed!

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HOLA446
I see no problem with usury - provided it is open and transparent and you have a choice wether to enter into it.

Claiming risk free investment is a lie.

Usury is a crime because it is not open and transparent.

is there a link to the offending advert?

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HOLA447
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HOLA448
It's tv, and I doubt anyone would bother YouTubing it.

I got a letter back from the ASA asking me the exact date/time/channel when it was seen, or they couldn't act. I haven't seen it since, so I can't follow up.

ASA jobworths at it again.! I dont suppose Abbey puts out that many adds- maybe they could ring and ask? Oh no, that wouldnt be cricket.

reminds me of the golden trough awards.

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HOLA449
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HOLA4410

I have been looking into this this morning on the basis that if something looks to good to be true then it usually is.

The product they are advertising is the Abbey Super ISA offering a rate of 10% if taken out in conjunction with their Guaranteed Growth Plan (or other 'qualifying products' which I haven't looked into).

The problem as I see it is that the Guaranteed Growth Plan (GGP) offers a minimum of 12% over 3.5 years or 18% over 6 years that's 3.4 and 3% respectively. The 6 year term can be taken out as part of a stocks and shares ISA.

So if you put the maximum £3200 into the cash ISA you'll get £320 back after year 1. The same amount in the GGP will yield £109 gross, £82 net on the 3.5 year and £96 on the 6 year as part of an ISA. Now these GGP yields are based on stock market performance but it would appear that Abbey are guaranteeing the minimums.

As you are locked in to the relatively low yielding GGP the 10% offered in the Super ISA is quickly eroded.

In my opinion it looks like a sneaky attempt to tie up you cash in a long term/low yield investment.

As far as complaints go, I think it lacks transparency and should quote all the returns and not just the headline %10 on the cash ISA.

Damo

Edited by GBdamo
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HOLA4411
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HOLA4412
I have been looking into this this morming on the basis that if something looks to good to be true then it usually is.

The product they are advertising is the Abbey Super ISA offering a rate of 10% if taken out in conjunction with their Guaranteed Growt Plan (or other 'qualifying products' which I haven't looked into).

The problem as I see it is that the Guaranteed Growth Plan(GGP) offers a minimum of 12% over 3.5 years or 18% over 6 years thats 3.4 and 3% repectivly. The 6 year term can be taken out as part of a stocks and shares ISA.

So if you put the maximum £3200 into the cash ISA you'll get £320 back after year 1. The same amount in the GGP will yield £109 gross, £82 net on the 3.5 year and £96 on the 6 year as part of an ISA. Now these GGP yields are based on stock market performance but it would appear that Abbey are guanateeing the minimums.

As you are locked in to the relatively low yielding GGP the 10% offered in the Super ISA is quickly eroded.

In my opinion it looks like a sneaky attempt to tie up you cash in a long term/low yield investment.

As far as complaints go, I think it lacks transparency and should quote all the returns and not just the headline %10 on the cash ISA.

Damo

Now you can se exactly why they pay people high money to work all this out. ( well actually, a teenager with Excel could doit, or any criminal drug dealer come to that)

They advertise a teaser rate to lure you in, but they are obtuse about the total package. It is, in reality, a con, a cover up of the facts, all designed to suck in the gullible and confuse the inquisitive.

Bankers are losing respect every day through acts and schemes like this. They make me sick.

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HOLA4413
I have been looking into this this morning on the basis that if something looks to good to be true then it usually is.

..

As you are locked in to the relatively low yielding GGP the 10% offered in the Super ISA is quickly eroded.

Not much of a con, though is it? 10% on an ISA, which I max out anyway, and the rest of the money in a capital guarenteed bond that pays something.

Dave

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HOLA4414
Not much of a con, though is it? 10% on an ISA, which I max out anyway, and the rest of the money in a capital guarenteed bond that pays something.

Dave

Proved by the first reply. Its a con and somebody has fallen for it.

My message: do the sums. Find a better deal.

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HOLA4415
It's tv, and I doubt anyone would bother YouTubing it.

I got a letter back from the ASA asking me the exact date/time/channel when it was seen, or they couldn't act. I haven't seen it since, so I can't follow up.

I am sure the ASA could ask for Abbey National to supply all of their TV adverts. This sounds lke a lazy Case Officer trying to get out of their work.

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HOLA4416
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HOLA4417
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HOLA4418
There's no reason for a savings product to be so complicated, other than to mislead. That's not what I complained about though. I complained about the "NO RISK" tag.

I know what your saying DnC but surely the same complaint should apply to all ISAs and similar products that guarantee a return. 'No risk'/'Guaranteed' are surely the same thing. To me it's the the fact they're hiding a relatively poor return behind a headline 10% intrest rate that we should take exception to.

Has anyone got a time and channel yet as I would also like to complain but for a different reason. I was in a pub when I saw it snd cannot remember what channel it was on.

Damo

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HOLA4419

I work in marketing (and I used to be savings marketing manager for a bank yonks ago) and can tell you this:

1. The ASA get thousands of complaints and cant chase down the ads themselves. They need the specific date/time of ads because when you do a TV ad you do several versions/cuts for diff timelength slots.

2. The legal interpretation of risk may be different from your own. I think if people had lost money at Northern Rock you may have a case. Also, when you sign up to products all the legal warnings are in the sign up process. You cant sign up from the ad - you can register interests and, presumably, phone up or get an application form.

3. All ads are going to maximise benefits and minimise risks (otherwise it wouldn't be very compelling). Ads get pulled all the time. I remember pulling a bond press campaign because of complaints upheld via the ASA that it was misleading

No conspiracy - the realilty is much duller as usual. The ASA get bombarded with complaints. I guarantee 100% that if I did an ad offering free tenners to people i would get complaints that it wasn't in fivers.

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HOLA4420
I work in marketing (and I used to be savings marketing manager for a bank yonks ago) and can tell you this:

1. The ASA get thousands of complaints and cant chase down the ads themselves. They need the specific date/time of ads because when you do a TV ad you do several versions/cuts for diff timelength slots.

2. The legal interpretation of risk may be different from your own. I think if people had lost money at Northern Rock you may have a case. Also, when you sign up to products all the legal warnings are in the sign up process. You cant sign up from the ad - you can register interests and, presumably, phone up or get an application form.

3. All ads are going to maximise benefits and minimise risks (otherwise it wouldn't be very compelling). Ads get pulled all the time. I remember pulling a bond press campaign because of complaints upheld via the ASA that it was misleading

No conspiracy - the realilty is much duller as usual. The ASA get bombarded with complaints. I guarantee 100% that if I did an ad offering free tenners to people i would get complaints that it wasn't in fivers.

No ones talking CT stuff here, it's just a missleading advertisment.

Point 2 you make says basically 'you can say anything you want in an advert as long as you admit it was all ****** before someone signs up'. I'm not quite sure about this one.

Damo

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HOLA4421

I spend a fair bit of my time trying to second guess what the ASA's attitude is likely to be to a particular claim. I think that they have a huge influence on copywriters. I think DNC's initiative stands a good chance of having a lot of effect even if we never see it.

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HOLA4422
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HOLA4423

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