Attacked online, credit firm says regrets ‘inappropriate’ wedding loan advertisement

KUALA LUMPUR, Nov 4 — AEON Credit Service (M) Bhd has admitted to using an “inappropriate” advertisement to promote one of its personal loan offers, after the matter went viral online and earned the company heavy criticism.

The credit firm said although the “Plan Your Dream Wedding” advertisement appeared to suggest so, the offer was not meant to encourage couples to borrow in order to live lavish lifestyles as applicants would first have to be thoroughly assessed before the loans are approved.

“The Company regrets the inappropriate message conveyed by the said advertisement, titled ‘Plan Your Dream Wedding’.

“We have noted public feedback on the advertisement, including perception that the advertisement seemed to encourage individuals to borrow in order to achieve a lifestyle beyond their financial means,” it said in a statement yesterday.

“AEON Credit wishes to clarify that the Company maintains policy of ‘responsible financing’ in granting credit to customers for personal financing and other products offered, and is subject to applicable regulatory requirements,” it added.

The firm went on to explain that its assessment of applicants typically includes a comprehensive check on the prospective customer’s outstanding debt obligations, as well as other relevant information.

The customer’s ability to repay the loan will be determined based on the appropriate maximum debt service ratio (DSR), which will be capped according to the applicant’s income range, it added.

The firm also explained that the personal financing product advertised was not merely meant to fund “dream weddings” as suggested, but was also for other purposes, including education, medical expenses, home renovations, purchase of essential goods, small business financing and travel.

Each eligible applicant is offered a maximum finance amount of RM100,000 for a maximum tenure of seven years, it added.

“The Company shall exercise greater care in future advertisements for its products to ensure that message conveyed and contents are not misleading,” the firm said.

On Monday, Malay Mail Online reported on the backlash received by AEON Credit when the full-page advertisement on the loan offer went viral online.

Upset, many Internet users accused the firm of encouraging youths to borrow to live beyond their means and said that it put unnecessary pressure on young couples who wished to get married.

In the advertisement, AEON Credit Service offered the i-Cash Personal Financing between October 9 and November 30 to those earning as little as RM800 per month, even without a guarantor.

The period of repayment can be up to seven years, and as a sweetener, it will reward a free gift card for AEON BIG hypermarket worth RM50.

A check by Malay Mail Online’s sister publication ProjekMMO with AEON Credit Service’s 24-hour call centre confirmed such an offer.

In a report two years ago[a], seasoned wedding planners told Malay Mail Online that the cost of an average wedding, across all races, soared to above RM50,000, causing some couples to take out personal loans to pay for their nuptials if they are unable to get much financial support from their parents.

For the Malay community, the dowry, or “wang hantaran” gifted by the groom to the bride’s family is between RM10,000 and RM18,000 for low to medium-range weddings, and RM50,000 for high-end weddings, they said.