MoneySupermarket wrist-slapped for ‘exaggerated’ claims

Comparison site MoneySupermarket.com has been warned by the Advertising Standards Authority (ASA) not to exaggerate claims on its site about chances of users being approved for loans.

Following a complaint over the wording of an ad for its Smart Search tool, MoneySupermarket.com is banned from using the ad in its current form again.

A member of the public complained MoneySupermarket.com's claim, "Get approved first time. Regardless of your credit rating, use this free and easy-to-use service to find the right cards for you" was misleading as she believed it meant everyone using the service was guaranteed approval for credit.

The comparison site's management said the Smart Search service was explained in detail on the website.

However, the advertising watchdog said the information provided was more likely to contradict than clarify the service.

In May, it was revealed the total commissions received by comparison sites hit £650m in 2010, despite many consumers being unaware of or underestimating the commission they paid.

The Financial Services Authority warned comparison site owners in June in an open letter they must ensure all activity carried out on their sites is done by properly authorized people.