In terms of their personal finances, it’s a dangerous time for many people at the moment. The recession, job fears, record personal debt levels and uncertainties about the future, all lead to a degree of vulnerability.

And that vulnerability, claims consumer watchdogs, has led to many people being exploited by financial companies, especially through the medium of television advertising.

And they are pointing out that there is a discrepancy in approach, when the Government is considering warning people about certain financial products (almost along the lines of health warnings on cigarette packets), yet not control financial advertising on TV.

TV is of course a popular advertising medium and most people are influenced by what they see in between their favourite programmes. But whereas buying a television, or food product will usually not have long term implications, buying a financial product can have long term issues.

Current advertising standards are strict when it comes to consumer goods. You cannot advertise tobacco products and alcohol cannot be associated with personal success, or attractiveness.

And the consumer watchdogs think that financial product companies get away with murder, associating their products with all kind of overt and subliminal lifestyle messages.

Adverts promoting debt recovery schemes and property equity release plans tend to gloss over many of the issues involved, and concentrate on happy, smiling people who have all their problems removed by the product on offer.

But it’s not a one-sided argument of course.

Others maintain that financial product advertising is a good thing, as it allows people to understand that there are a large number of companies out there who offer superb products that can actually change people’s lives for the better. And it’s unlikely that without TV advertising on prime-time, day-time and satellite channels, that most people would ever be exposed to the wide range of financial products available.

And those on the pro-side of the argument believe that the financial products industry cannot sensibly be compared with the tobacco and drinks industries.

Furthermore, most financial companies offering the consumer products are already closely monitored by the Financial Services Authority. This is a body which regulates companies that offer financial products. Thus, no person should use a company which offers a financial scheme, plan, or device that has not been approved by the Financial Services Authority. And this body is currently reviewing how financial products are promoted and sold to the public.

What’s more, the Advertising Standards Authority vets TV adverts, so if a company was deemed to be selling something illegal, or misleading, then this body would step in and have to the power to make the company change their message, or pull the advertisement altogether.

So, whatever view people hold, it really comes down to the viewer making sure that what they commit to in terms of financial products, they are sure they have made the right decision. And this means that people should not act hastily, take external advice if possible and compare similar products on offer. Remember the old saying, act in haste, repent at leisure.

Guest Article by Neil Camp

The third largest supermarket in the world, Tesco, is set to boost its customer loyalty scheme, at the same time as beefing up its commitment to the personal finance sector.

Throughout the recession Tesco has lost ground to the bargain basement food stores as customers reeled from an uncertain future. Although not an upmarket store, Tesco has still had to cope with the impact of the no-frills operations such as Aldi and Netto, who keep costs down with smaller stores and less staff.

And Tesco can hit back not only with competitive pricing, but with their hugely successful Clubcard loyalty scheme which currently has a staggering 16 million members. The superstore hopes to add a further one million members and as part of the major revamp, has doubled the value of its vouchers which buying such items as beauty and baby products, flowers and clothing.

Tesco also continues in its attempts to offer its customers a fully fledged banking facility. It has already announced that it intends to open 30 in-store ‘bank outlets’, offering a range of personal finance products. Tesco current accounts are said to be in the offing. And as a sign of their commitment to the sector, Tesco Personal Finance said they intend to take-on some 250 people to support their move into banking. The jobs will be created at their Edinburgh headquarters.

Guest Article by Neil Camp