Google bans adverts for payday loans
The search engine will no longer allow ads for loans where repayment is due within 60 days.
The update is set to be enforced from July 13th 2016.
The search engine will no longer allow ads for loans where repayment is due within 60 days.
The update is set to be enforced from July 13th 2016.
Google’s Director of Global Product Policy David Graff announced the move in their Public Policy blog. He said;
“When ads are good, they connect people to interesting, useful brands, businesses and products.
“Unfortunately, not all ads are–some are for fake or harmful products, or seek to mislead users about the businesses they represent. Ads for financial services are a particular area of vigilance given how core they are to people’s livelihood and well being.
“In that vein…we’re banning ads for payday loans and some related products from our ads systems.”
In the U.S. they are taking an even stronger stance, where they will also stop advertisements for any loans with an APR of 36% or more, describing the terms as leading to ‘unaffordable payment and high default rates for users’.
In 2015 Google disabled more than 780 million ads after finding them to be counterfeit or part of phishing scams. Facebook officially banned payday loan ads last August.
The move is likely to be celebrated by consumer groups, but raises issues around consumer choice and whether it should be part of the media giants remit to decide what kind of credit options can be easily viewed by and available to the public.
The changes will not affect companies offering financial products such as mortgages, car loans or credit cards and these companies will likely enjoy a boost to their Google listings and advertising.
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