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    A charity group from the UK has warned that the advertisements for loans featured on the social networking site Facebook could fall foul of relevant regulations.

    Credit Action is concerned that the promotions are being aimed at young people who use the popular website regularly and has written to the Office of Fair Trading to make clear its complaints.

    Part of the problem is that annual percentage rates are not featured on the advertisements and could lure young people into taking on loans that eventually lead to serious debt problems, the charity has explained.

    "Research by Credit Action has shown that much of this advertising breaks the rules on advertising credit and so we are campaigning to encourage Facebook users to report ads which break the rules," said a spokesperson for the group.

    Last week, David Kuo, head of personal finance at Fool.co.uk, suggested that British consumers facing money problems should avoid placing credit applications that are likely to be rejected.

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