After a series of warnings about the dangers of social networking sites, fraud in particular, there is now even more to be aware of. Credit Action, a debt charity, found that many adverts by credit companies on sites such as Facebook failed to give the details of their offers required by law.

Adverts for credit cards and loans must provide the annual percentage rate (APR) of interest that the borrower would be charged, if it offers incentives such as a payment-free period or a free gift, if the advert implies that it carries a better credit rate than other companies or it suggests it is suitable for people with poor credit histories.

Although some of the companies were US-based which meant they were not aware of UK advertising laws, according to Malcolm Hurlston, Credit Actions chief executive, there were also British firms involved. One loan was found to have an interest rate of 1,355%. 

The charity highlights the new ideas creditors are coming up with to entice more people particularly youngsters and those less well off into obtaining credit they think they need and in new forms, against their car or even their salary.