Google tighten rules surrounding financial advertising for debt services

Google have recently announced a new measure to help protect consumers and legitimate organisations in the UK when advertising debt advice and support services. Only those who are authorised by the Financial Conduct Authority (FCA) for debt counselling and debt adjusting will be able to show their advertisements for debt services.

The new policy will come into force on the 6th December 2022 and anyone looking to advertise on this platform will need to complete Google’s verification process before 16th January 2023.

The reason for the change in policy is that for many years, unlicensed organisations and individuals have been effectively misleading consumers into thinking they are speaking to an authorised debt advice agency, when in fact, they are giving their personal information to an intermediary, which then sells that information to an Insolvency Practitioner to set up an Individual Voluntary Arrangement. These ‘lead generators’ often do not have any relevant qualifications or experience and do not consider the clients circumstances or what is best for them. This will often result in the client not getting the help they need as they are not made aware of all the options that are available to them.

There remains some concern that exempt professional firms and recognised investment exchanges will be able to continue advertising as they are classed as FCA authorised advertisers. Activity in this area will be monitored by the advice sector and any ongoing concerns reported to the FCA.

A Money & pensions Service representative reacted to the change in Google’s advertising policy saying “This is an extremely positive development both for people struggling with debt and for the debt advice sector whose support and expertise changes lives.”

David Rodger, CEO of Debt Advice Foundation, also welcomed the new measures “The change to Google’s advertising policies are very good news for consumers and for the sector generally. Not only will they play a crucial role in protecting millions of people that will be impacted by the cost of living crisis in the coming months but also over the longer term, as the proportion of service users accessing debt advice online continues to trend upwards.”

The press release to the Money & Pensions Service response can be viewed here.