London-based embedded loan fintech SteadyPay has been reprimanded by advertising regulators for promoting “irresponsible” lending practices. 

An ad for SteadyPay that featured on Meta platforms depicted a woman holding a wad of cash saying: “Do you want something from the Black Friday sales, but worried you can’t afford it? You need to get CashWave by SteadyPay.” 

She went on to say: “Simply apply for CashWave on the SteadyPay app and after a quick soft credit check, if you’re eligible, you’ll be able to withdraw £300. Life doesn’t wait for payday.” 

Small print in the ad revealed the loans being advertised were available with an annual percentage rate (APR) of 91.26%. 

The Advertising Standards Authority (ASA) expressed concern at the suggestion that consumers take out high-interest loans to fund online shopping when they can’t afford it. 

SteadyPay, which is regulated by the Financial Conduct Authority, argued that its ad stated that credit was subject to affordability checks and that no applicants could access funds without being assessed. 

The fintech claimed it was offering a service to consumers who are otherwise rejected by mainstream lenders and pointed to an internal statistic that claimed less than 5% of its customers defaulted on their loans, which it said suggested it was largely lending to those who could afford it. 

The ASA ruled the ad was “irresponsible” for encouraging consumers to buy products they can’t afford, made worse by the use of the term Black Friday, which refers to a sales event offering deals on largely non-essential frivolous products. 

The regulator also said the ad trivialised the decision to take out a loan through its description of the process as speedy and easy. 

SteadyPay has been told the ad must not appear again in this form. 

Founded in 2017, SteadyPay provides lending as a service products to businesses which can then offer their customers credit services. 

The company has received state-backed funding from both the Future Fund and Innovate UK. 

Last month, the ASA forced fintech group Wahed to remove advertising material that depicted burning dollars and Euros over potential for causing offence.

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