Kerry Katona has been ditched as the face of payday loan firm Cash Lady after this week being declared bankrupt for the second time in five years.
Just last month, an ad featuring the Atomic Kitten and reality TV star was blasted by the Advertising Standards Authority after it appeared to promote payday loans as a means of funding a celebrity lifestyle.
Under the strapline “fast cash for fast lives”, the ad featured Katona talking about her own money woes with phrases such as “We’ve all had money troubles – I know I have”, and “You could see your bank and fill in loads of forms, but is there an easier way to get a loan”.
Katona filed for bankruptcy this week at Wigan County Court; she was first declared bankrupt in 2008 after being unable to pay the last £82,000 of a £417,000 tax bill.
PDB UK, which trades under the name of Cash Lady, confirmed the decision to stop using the star. A company statement read: “We were sorry to hear about Kerry’s current financial situation. Clearly, as a business, we are committed to responsible lending, so it is with sadness that we will not be able to continue using Kerry as the face of Cash Lady. We enjoyed working with Kerry a lot, and we wish her all the best in her future endeavours.”
Earlier this week, the boss of the new loans regulator said payday loans firms could face an outright advertising ban.
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