The ads prey on the poor and economically vulnerable, critics say
Google is banning ads for payday loans from its ad systems in a move to stymie the effectiveness of predatory lenders. Ads for loans with a repayment due date within 60 days or an APR higher than 35% will no longer be allowed on Google’s networks, the search giant announced Wednesday.
“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,” Google Director for Global Product Policy David Graff said in a blog post.
Among people who take out online payday loans, half end up paying penalty fees costing $185 on average, according to the Consumer Financial Protection Bureau.
The ban goes into effect on July 13. Facebook already bans payday loans, but some other large Internet sites, such as Yahoo, do not, according to the Washington Post.