Google updated the Ad policy for public. It will no longer accept Payday Loan ads from July 13, 2016. Payday Loan is relatively small amount of money lent at a high rate of interest. It includes the agreement that it will be repaid when the borrower receives their next salaries.
“Research has shown that these loans can result in unaffordable payment. It may also lead to high default rates for users. So we will be updating our policies globally to reflect that.” Google’s product policy director, David Graff, wrote in a blog post.
Google will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In U.S., Google also banning ads for loans with an APR of 36% or higher.
Payday owners will no longer be able to purchase ads. These ads appear above search results for key terms under Google’s AdWords program. But they will still appear in search results.
According to Google, “This change is designed to protect users from misleading or harmful financial products. The change does not rein in companies marketing loans for mortgage, student, car and commercial loans as well as credit card offers.”
Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights also commented on this policy. “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.”
“These policies are biased and a form of censorship.” A spokesperson for the Community Financial Services Association said in a statement. “Google is making a blanket assessment about the payday lending industry rather than discerning the good actors from the bad actors.”
In 2015 Google disabled more than 780 million ads. Reasons ranging from counterfeiting to phishing. Ads for financial services are a particular area of vigilance given how core they are to people’s livelihood and well-being.