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Google takes a stand against payday loans, bans ads

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Google will no longer publish advertisements from companies offering short term loans with high interest rates.

The company posted a blog announcing it will cease accepting submissions from the so-called ‘payday loan’ purveyors as of July 13.

Under the new guidelines, loans with terms shorter than 60 days will no longer be featured.

Likewise, any loan charging an interest rate upwards of 36 per cent will be banned.

Google says the payday loans ban be harmful and its hoping to protect its users from the traps of unaffordable payments.

Related: Google I/O 2016: What to expect?

When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that,” Google wrote in a post on its Public Policy blog on Wednesday.

“This change is designed to protect our users from deceptive or harmful financial products and will not affect companies offering loans such as Mortgages, Car Loans, Student Loans, Commercial loans, Revolving Lines of Credit (e.g. Credit Cards).”

Is Google right to ban these advertisements from search results?

If so, what else would you like to see get the chop? Share your thoughts in the comments section below.

abl soft

June 1, 2016, 4:28 am

I believe that is a very good decision.It is not humanly enough to charge costumers for that so big interest rates which as the loan will be paid for a shorter time.

Jon

September 1, 2016, 12:33 pm

Interestingly though... if you do a quick Google search for "V5 Loans" you'll still find they allow advertising for short term loans against your car, and the percentage again is over 400%.

Unfortunately it seems there is always going to be money lenders available for those in need.

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