Kerry Katona slammed for payday loan firm ad

 

Simon Read
Friday 11 January 2013 21:00 GMT
Comments
Kerry Katona was once bankrupt
Kerry Katona was once bankrupt (Getty Images)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Reality TV star and former bankrupt Kerry Katona this week became the first celebrity to accept money to promote expensive payday lenders.

The Atomic Kitten singer is the star of a new TV advert for a payday loan firm that targets women, and charges 2670 per cent APR for short-term credit. In the ad, Katona refers to her bankruptcy by saying: "We've all had money troubles – I know I have."

But MP Stella Creasey, who is leading a campaign to crack down on high-cost lenders that target vulnerable people, said: "It's sad to see someone who knows first-hand the misery of being in debt encouraging others to use legal loan sharks rather than credit unions when they need a loan.

"With the high interest charges, there's little wonder so many women get into problems borrowing from payday lenders, with debt charities reporting a surge in the number coming to them for help."

Gemma Johnson of the money-saving website MyFamilyClub also criticised the troubled star, who this week joined a reformed Atomic Kitten for a reality TV show, for accepting cash to promote the payday lender.

"It is shocking that Kerry Katona publicly backs a payday loan broker when there is strong evidence that their extortionate levels of interest can cause innocent families to slide into catastrophic levels of debt," she said. "We urge anyone tempted by these quick fixes to look into safer alternatives such as credit unions."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in