Google ban adverts for payday loans

Payday loans ban
16 May 2016

Google have announced that they're putting a ban on payday loans.

They announced this in a blog called 'An Update to Our AdWords Policy on Lending Products,' with David Graff - the company's Director of Global Public Policy - explaining what's going on.

"We're banning ads for payday loans and some related products from our ads systems. We will no longer allow ads for loans where repayment is due within 60 days of the date of issue."

Now, this is only the the US at the moment, but they'll be looking at rolling this out worldwide.

Graff continued: "We are also banning ads for loans with an APR of 36% or higher. 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."

"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)."

"According to Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights, "This new policy addresses many of the longstanding concerns shared by the entire civil rights community about predatory payday lending. These companies have long used slick advertising and aggressive marketing to trap consumers into outrageously high interest loans - often those least able to afford it.""

"We'll continue to review the effectiveness of this policy, but our hope is that fewer people will be exposed to misleading or harmful products."

Of course, you'll still be able to find companies that offer payday loans through their search engine - the only thing being changed is that these companies won't be able to get Google adverts.

This follows a similar ban which has happened on Facebook, which have been in place since August 2015.

Seeing as between them, Google and Facebook are two of the biggest advertisers in history, this is not going to be well received by those in the payday loan world.

TOPICS:   Advertising   Banking

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