Google announced yesterday that starting July 13th 2016, they will be putting a ban on payday loan ads. and ads related to some other related products.
Google says:
We will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the U.S., we are also banning ads for loans with an APR of 36% or higher. 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.
According to Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights, "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."
The purpose of the ban is to protect the users from the deceptive financial products. Google clearly mentions that the ban will not affect companies offering loans such as:
- Mortgages
- Car Loans
- Student Loans
- Commercial loans
- Revolving Lines of Credit (e.g. Credit Cards).
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