Would you be tempted to go-go on our loan deal?

Ever thought about getting an extra loan to sort out your finances? Think again. The adverts can be an absolute minefield of small print and weasel words where rates can be double the quoted level and "no cost" deals add up to tens of thousands in fees.

The Office of Fair Trading admits one in five ads breaks the law. And to show you how the dodgy loan companies do it, Jobs & Money has created its own firm.

Here's a guide to what's wrong with our ad:

Mortgages-a-go-go: We have no address or company name; and we only say we are a credit broker as opposed to a lender in small print. Credit brokers do not need to look at the whole loans market. At least, we are a broker. Some advertisers pose as independents, but the tiny type disclaimer shows they are "introducers" - this means they tied to one lender's products.

Loans from 4%: Few will pay this really attractive rate - the weasel word is "from". So most will have to fork out more - much more as the typical rate (in the almost unreadable small print) is 8%. The typical rate is that applying to 50% or more, so large numbers could pay even more - the advert does not have to show a ceiling.

But probably no one will pay as low as 4% as our small print indicates the rate applied in November when interest rates were lower. Using out of date levels is a common trick.

Decisions in principle: This is meaningless. Anyone can give such a "yes" decision on this basis and then say "no" later on. The idea is to convince the applicant they can have a loan - and then sell them one with super-high commission or brokerage fees.

Upfront fees: There are no initial costs, our ad implies. And there are none. But take a look at the small print to see how Mortgages-a-go-go earns its not inconsiderable profits. Once the loan is agreed (after the initial period) there is a hefty £1,500 arrangement fee which covers legal costs. There can be up to 5% for broker commission and up to 10% more for "difficult" cases. No details need be given of what is "a difficult" case. But most of those aiming for the "as seen on TV" loans market, have some financial problems -or they would go to a high street bank or building society.

No credit scoring: No one will lend to someone with £100,000 debts and no job, on the same terms as someone with a £100,000 salary and no debt. There will be credit checks but no formal scoring methods. In any case, as long as the loan is secured on a property with plenty of equity, the lender relaxes.

Variable rates : Linked to base rates, but how?

125% loans: Even if you qualify, a large slice will be at unsecured loan rates which could be 30% interest a year.

Accident cover: This will be the most expensive on the market - and you will be expected to pay up front for five years whatever the suitability of the insurance cover for your needs.

Discounts: "Up to 3%" can mean that the real discount you're offered is 0.1%. And for how long is the discount?

Rebates: Will these be worked out using the notorious rule of 78? This formula can cost you thousands more if you repay early.

Small print: We relegated the statutory warnings to a magnifying glass-needed zone.

The OFT research revealed:
· Annual percentage rates not shown, or not shown prominently enough.

· A failure to show the "typical" rate which applies to at least 50% of borrowers.

· Print too small to be read.

"I'm surprised they can only find one in five adverts with mistakes," says Ray Boulger of mortgage brokers Charcol. "It is much higher."

Credit law expert Bob Imrie says: "The credit advert rules are out of date. They have loads of small print which no one expects customers to read. There will be new Financial Services Authority and Department of Trade rules in October."

The FSA intends outlawing difficult-to-decipher small print and confusing headline rates that may shoot up after a few months.

Adverts will have to show plus points and downsides in an equally prominent fashion. A stepped fixed rate loan, where interest goes up each year, will have to show all stages in the same typeface - not just the best rate.

And out will go "your home is at risk" for the far more threatening "your home may be repossessed". The FSA says it will have to be in big print.

But these new rules will only apply to mortgages and remortgages.

The acres of adverts -largely in tabloid and local newspapers - from credit brokers, second mortgage lenders and debt consolidators are outside the new FSA regime. Yet these firms typically deal with more vulnerable consumers, as well as charging higher interest.

Boulger adds: "It is a mistake to have two systems. The FSA is pro-active - it will go looking for trouble. But the Department of Trade, which polices credit laws, and is still consulting on new rules, relies on complaints. These are unlikely in second mortgages and loan consolidations. This split regime will bring consumer detriment."