Revisions to the Consumer Credit Act

**harris1** · 22-10-04

I have looked around and I have not seen this mentioned anywhere on the forums.

There are obviously lots of finance affiliates using this site. What are your thoughts on the Revisions to the Consumer Credit Act comming into effect on Oct 31st?

I know many finance merchants are very worried about the new regulations and ensuring that their online activities are fully compliant. A couple of the big players have already frozen their affiliate programs as a result of the new legislation.

The paper work is daunting, I started reading it and it seems to be well over 100 pages in length. Are people worried about the FSA taking a closer look at the way financial products are marketed online?

How do you think it will affect your sites and your ability to promote merchants / produce content?

Obviously the concern is that some finance merchants will stop running affiliate schemes altogether because of the greatly increased workload ensuring their affiliate sites are fully compliant with the new regulations.

That and the fact that there are now far reaching penalties for both the merchant and the affiliate site if the affiliate site provides their visitors with incorrect information regarding the product concerned.

INFORMATION IN THIS POST DOES NOT CONSTITUTE LEGAL ADVICE AND CANNOT BE RELIED UPON.

**jhulott** · 22-10-04

Hi Harris1

There has been a lot of talk around the CCA/ FSA now for a while and this latest spat of notes from Merchants is really because they aren't ready, so they are pulling things down until they can sort things.

The CCA opens a new can of worms in that "financial promotion" now has to carry wealth warnings. Can you imagine a 125 x 125 banner carrying a readable wealth warning. It just won't happen.

Realistically these merchants will come back but there will be a lot more advertising around text links and editorial content as opposed to rate driven banners and buttons. These can be served remotely so it is ready for them to keep compliant. we are working with a few merchants now to make things compliant.

I think the best advice is to pull what ever you have running where merchants are telling you to pull stuff and just ride it out.

The industry has needed this kind of regulation for a long time and in the end it is a good thing for the consumer , just with no clear defined guidelines for affiliate websites we are in a grey area.

**harris1** · 22-10-04

I am really surprised there has been so little forthcoming from the networks on this to be honest. With the exception of OMG, most of the big networks seem to have ignored the matter or pushed responsibility onto the merchants.

To me it seems like there is allot of "Head in Sand" mentality about this at the moment.

No one in this business can ignore this and hope the problem goes away and that includes affiliates.

INFORMATION IN THIS POST DOES NOT CONSTITUTE LEGAL ADVICE AND CANNOT BE RELIED UPON.

**Qui Gon Jinn** · 22-10-04

Good post...

What is required is approved copy for our sites, written by the merchants, all we do is stick a java link up. Not great seo wise, but it would help. Hence OMG offer this for most of their merchants anything from 25 to 500 word copy.

**jhulott** · 22-10-04

I know what you mean. Even within the OMG email there is till alot of misunderstandings going on. Secured Loans being regulated for example which isn't happening. It is a bit of a mess and with 9 days to go it is a bit silly really.

I think this is too big for one person to say this way guys follow me. We at J2 are currently working on something that will involve the FSA / CCA / OFT people to get them into a room and say this is how we are doing it currenlty. How to we need to change in order to move forward.

I'll keep the boards up to date with developments on this project.

**Elaine** · 22-10-04

I really don't think affiliates realise the gravity of the situation as regards selling financial information.

being ex- halifax I know that the branch staff are undergoing massive training for the new legislation - and if they don't keep to the letter of the law they will be in serious trouble - one freind jokes 'I'll end up doing time if I'm not careful'

if a cashier in a bank has to really watch their p's and q's when trying to persuade customers to take out that personal loan or visa - how are the merchant sites going to police their affiliates?

**Emma AdSelect** · 22-10-04

We have sent out an email regarding the Capital One campaign, which details what we all have to do to ensure they comply, and we have been sent information from Create Services regarding their credit cards and what they're doing - which I am happy to forward to anyone who requests it.

**jhulott** · 22-10-04

Emma,

I'd be happy to receive what ever you have as it will all help us get a clearer picture of how these guys are going to move us all forward.

Can you PM them to me?

Thanks

**harris1** · 22-10-04

We have sent out an email regarding the Capital One campaign, which details what we all have to do to ensure they comply, and we have been sent information from Create Services regarding their credit cards and what they're doing - which I am happy to forward to anyone who requests it.

Yes I will have any information that is on offer. Seing as the two networks I have Cap 1 with havent offered any advice so far.

What is required is approved copy for our sites, written by the merchants, all we do is stick a java link up. Not great seo wise, but it would help.

I cant agree more. But what we could also do with is some sort of guidelines on general copy for merchants and what can be included.

I started off thinking that if you dont include and reference to apr / introductory offers etc or any wording suggesting that you recommend the product it would be OK.

THis really is not the case it seems. From the information I have received from merchants its seems you are not allowed to mention any features or benfits of the product at all.

Some examples really would be helpful of what can be said regarding the product, merchant without creating problems.

INFORMATION IN THIS POST DOES NOT CONSTITUTE LEGAL ADVICE AND CANNOT BE RELIED UPON.

**jhulott** · 22-10-04

I think you hit the nail on the head we you said

I started off thinking that if you dont include and reference to apr / introductory offers etc or any wording suggesting that you recommend the product it would be OK.

Affiliates are not authorised to "recommend" products as you are not authorised by the FSA but

mentioning APR rates seems to be the biggest problem of all.

I think you will have to use approved text only.

**harris1** · 22-10-04

I think you will have to use approved text only.

This will cause major problem for people who get most of their traffic from SEO. But I agree it seems likely.

In the first instance I am removing all the details, I mentioned from my copy, without an alternative or proper advice in place from the majority, there is not much else I can do at the moment.

INFORMATION IN THIS POST DOES NOT CONSTITUTE LEGAL ADVICE AND CANNOT BE RELIED UPON.

**lurker** · 22-10-04

As mentioned on a previous thread, Re CCA:

Some basics here:

http://www.dti.gov.uk/ccp/topics1/co...nce.htm#review

and here:
http://www.dti.gov.uk/ccp/topics1/pdf1/credad04.pdf

It's not that scary - a 13 page document that is the new Regs and a 10 page doc of guidelines.

Re FSA:
"Mortgage and general insurance business does not become regulated until 31 October 2004 and 14 January 2005 respectively"
From the FSA site http://www.fsa.gov.uk/mgi/
Unless you sell mortgages you have time to comply, if you are selling mortgages be sure that you're advertising, not advising - this covers 99% of affiliate sites.

**jhulott** · 22-10-04

Hi Lurker,

You are right on the FSA elements BUT CCA

http://www.dti.gov.uk/ccp/topics1/pdf1/credad04.pdf

becomes law on the 31st October too which means Credit Cards , Unsecured Loans and Savings Accounts (which I think the majority of the major affiliate programs are!) have all these new APR rules and ad regs which we all have to comply with by the 31st.

**jhulott** · 22-10-04

Hi Harris1

I can see this having an impact on SEO especially those who still use doorways. I would have thought the more generic SERPs wouldn't be driven by APR or product marketing material - but hey this maybe why I'm never on the first page of google!

Having said that that remember you still can create content independently of product info. A fixed rate mortgage still works in the same way regardless or whether it is a 5% fixed or a 10% fixed.

Just don't say its the best deal for you!

**lurker** · 22-10-04

"all these new APR rules and ad regs which we all have to comply with by the 31st."

If you read the Reg's there isn't much that needs to change. I'm no lawyer but I spent half a day going through this + I'm relieved that it's not too major.