Google bans advertising for usurious loans
Google is banning ads for small loans with extremely high interest rates that can trap customers in a cycle of debt. The company announced that, starting July 13, ads for this type of loan will no longer be displayed on Google.
Those affected include money lenders who demand repayment within 60 days. In the USA, the measure is also aimed at loans with an annual interest rate of 36 percent or more. In essence, it is about so-called payday loans - loans that are automatically paid off with the next salary. However, customers of these offers often end up in a cycle of debt, as the interest rates are usually horrendously high. "This change is designed to protect our users from misleading or dangerous financial products," explained Google. Ads for mortgages, car loans, student loans or credit cards are therefore not affected. In future, users looking for small loans will only see them as search results - but no longer as advertisements. Consumer advocates welcomed Google's announcement. Wade Henderson from the Leadership Conference on Civil and Human Rights explained that this would label small loans "like explosives and tobacco as dangerous products". (SDA)
