UCAS backs down over debt ads – but not enough

The University and College Admissions Service (UCAS) was criticised after it sent out an email through its commercial arm, UCAS Media, which featured marketing from private lender Future Finance – a firm that provides loans to both undergraduate and postgraduate students.

Unlike Government-funded student loans, which currently have an interest rate of up to 5.4% and only require you to start repaying once you've graduated and are earning over £25,725 a year (rising to £26,575 a year on 6 April 2020), interest rates on Future Finance loans range from 8% up to 23.7%.

Last week, the Charity Commission wrote to UCAS to "remind it of its obligations", saying it was aware of concerns over the emails.

UCAS has now said any future messages will include "clear information on all the funding options available to students" and will "strengthen the information it provides" – but Martin Lewis has reiterated his call for it to ban adverts from any commercial debt firms.

Update Tue 24 Sep: The higher education body Universities UK has now also told us it is looking into this issue and will raise Martin's concerns about the ads with UCAS directly.

See our Martin Lewis calls on UCAS to stop emailing ads for costly private 'student loans' MSE News story for his original letter to the UCAS board of trustees.

What does the Charity Commission say?

The Charity Commission, which regulates UCAS, told us that it got in touch with the organisation at the end of last week.

A spokesperson for the watchdog said: "We are aware of concerns regarding emails sent by UCAS on behalf of Future Finance and have contacted the charity on this issue.

"We've contacted UCAS to remind them of their obligations towards their charity. It is now for the trustees to consider our guidance and how they manage their obligations in the best interests of their charity.

"More generally, charities hold important positions of trust in society, so it is vital that any relationships with non-charitable organisations are clear to those the charity is set up to help. The public rightly expect charities to be driven only by their charitable mission and purpose in everything they do. New guidance from the commission makes clear that trustees should work to defend and promote their independence from non-charitable organisations at all times."

The Charity Commission published its new guidance on 29 March this year.

What does UCAS say?

UCAS told us that it will be responding "imminently" to the Charity Commission, while chief executive Clare Marchant will be writing to Martin to request a meeting to discuss the issues.

A spokesperson said: "The UCAS and UCAS Media boards have this week discussed feedback from the Charity Commission, MoneySavingExpert and students on the recent Future Finance email sent to students who chose to opt in to mailings from UCAS Media.

"Trustees continue to support UCAS Media's objective to work with companies that provide products and services which are likely to be of value to students.

"Following discussion, we will work with Future Finance to ensure further messages from UCAS Media include clear information on all the funding options available to students, stressing that a Government-funded loan should always be the first port of call, as well as signalling the likely interest rates and terms within the email.

"We will look to strengthen the information and advice we provide through our website, emails and across social media."

What does Future Finance say?

A Future Finance spokesperson said: "We make very clear in all our communications that we are a private lender.

"We are committed to responsible, transparent lending practices and always tell students that they should exhaust all Government-subsidised support before coming to us."