Firms and ads

EBS

One high-profile financial product that became the subject of a recent ASAI ruling was EBS's controversial campaign for its Family First mortgage.

Like other equity release products, Family First gives parents who benefited from the 1990s surge in house prices the chance to borrow up to €30,000 more against the value of their home and use it as a deposit for children struggling to afford even shed-sized property in a 30-mile radius of their place of work.

Just another lender taking advantage of a current trend, some might say, but others felt the emotive father and son television advert was an example of moral blackmail and complained. "As far as we could see it didn't breach any of the statutory rules, but a lot of people were offended by it," notes Mr McCumiskey.

It was then up to the ASAI to check if EBS had breached its codes on advertisers' sense of responsibility to society, placing undue pressure on consumers or causing widespread offence. It ruled that it hadn't.

Forestry Plan

Sometimes even the position of an asterisk can make the difference between what is considered acceptable and what is deemed to be misleading.

Last year, a press advertisement for the Fourth Forestry Investment Plan included the words "9.6 per cent per annum TAX FREE".

A complainant to the ASAI said he thought this to mean a guaranteed annual return, rather than a projected tax-free return on the investment, which was detailed in the plan's prospectus. He considered this to be misleading.

The advertisers said that the advertisement clearly stated in a footnote that "past performance is no guarantee of future returns" and never used the word guarantee at any stage.

Nevertheless, the ASAI upheld the complaint.

The words "9.6 per cent per annum tax free" were not linked to the footnote and could be read as a promise of a 9.6 per cent per annum tax-free return.

Permanent TSB

Permanent TSB became the subject of a complaint when an advertising leaflet used the words "mortgage approval in an instant" and "get your mortgage instantly".

The complainant considered the promise of an instant loan approval misleading, given the reality of completing a detailed application form, surveying the house and buying life assurance.

The text of the leaflet went on to explain that "get your mortgage instantly" actually referred to the fact that consumers could be given initial mortgage approval, indicating how much they might be able to borrow.

The actual securing and drawing down of the loan would naturally take much longer.

The ASAI said the leaflet was ambiguous, but dismissed the complaint on the basis that the public would be aware that a major transaction such as a mortgage could not be completed instantly, as financial and legal requirements would have to be met. The advert was not likely to raise anyone's expectations, it ruled.