20 May 2018
visit www.ebaday.com

Google bans payday loan ads

12 May 2016  |  4858 views  |  2 web HTTP

Google is putting a global ban on advertisements for payday loans on its site in a move designed to protect users from "deceptive or harmful financial products".

The ban, which comes into effect on 13 July, means that the world's most visted site will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the US, banner ads for loans with an APR of 36% or higher will also be axed.

David Graff, director, global product policy, Google, says in a blog: "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."

Wade Henderson, CEO, The Leadership Conference on Civil and Human Rights, welcomed the move, saying: "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."

However, Lisa McGreevy, CEO, Online Lenders Alliance, has hit out at Google: "The Federal Reserve Board noted last year that 47% of Americans are not prepared to handle a $400 unexpected expense. This is yet another tactic that further limits the ability of families to have access to credit to fulfill their financial obligations.

"Limiting their access to the financial system will only exacerbate their problem. This unprecedented abuse of power by a monopoly player should concern lawmakers at both the state and federal levels."

Comments: (2)

A Finextra member
A Finextra member | 12 May, 2016, 14:06

Typo?  "In the US, banning ads for loans with an APR of 36% or higher will also be axed." Banning needs removing? or is banning a typo for 'Banner'

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 12 May, 2016, 17:38

Is Google planning to enter fintech via payday loans?!

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK competition watchdog proposes price comparison site for payday lenders

UK competition watchdog proposes price comparison site for payday lenders

11 June 2014  |  3480 views  |  0 comments | 2 tweets | 1 linkedin
UK regulator to crack down on payday lenders

UK regulator to crack down on payday lenders

03 October 2013  |  5890 views  |  0 comments | 3 tweets | 2 linkedin
OFT warns payday lenders as Wonga apologises to MP over Twitter abuse

OFT warns payday lenders as Wonga apologises to MP over Twitter abuse

22 November 2012  |  7123 views  |  0 comments | 3 tweets | 2 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Ripple moves to build ecosystem around XRPRipple moves to build ecosystem around XRP
9526 views comments | 5 tweets | 7 linkedin
HSBC claims blockchain breakthrough for trade financeHSBC claims blockchain breakthrough for tr...
9203 views comments | 14 tweets | 16 linkedin
IT implications and the need to pivotIT implications and the need to pivot
9193 views comments | 2 linkedin
Irish bank caught in social media spying stormIrish bank caught in social media spying s...
8010 views comments | 25 tweets | 16 linkedin
Former JPMorgan blockchain leads unveil new startupFormer JPMorgan blockchain leads unveil ne...
7148 views comments | 2 tweets | 2 linkedin

Featured job

(GBP Equivalent) Six-Figure Base + OTE + Benefits
New York City, NY - USA

Find your next job