In a statement made earlier this week, Google announced that effective July 13, 2016, it will be banning all advertisements for loans that need to be paid within 60 days of the issue date. Ads for loans with an APR higher than 36 percent will also get the boot.
This means that we should no longer see ads for payday loans or other short-term loan products with high interest rates by mid-July. Google is following in the footsteps of Facebook, who also announced a similar change to its policy last year, essentially banning ads for any loans that were designed to help consumers cover their expenses util their next payday.
Let's be clear that this certainly doesn't mark the end of times for payday loans. We may no longer see their often shady and deceptive ads on Google, but consumers who desparately need this type of short-term credit will still know where to find it. According to the FDIC, there are more than 24 million households in Amercia that are underbanked. Many of them still rely on short-term credit to make ends meet from one week to the next, which means predatory payday lenders will continue to thrive. They will just need to find a new advertising channel other than Google in which to spend their marketing dollars.
This means that we should no longer see ads for payday loans or other short-term loan products with high interest rates by mid-July. Google is following in the footsteps of Facebook, who also announced a similar change to its policy last year, essentially banning ads for any loans that were designed to help consumers cover their expenses util their next payday.
Let's be clear that this certainly doesn't mark the end of times for payday loans. We may no longer see their often shady and deceptive ads on Google, but consumers who desparately need this type of short-term credit will still know where to find it. According to the FDIC, there are more than 24 million households in Amercia that are underbanked. Many of them still rely on short-term credit to make ends meet from one week to the next, which means predatory payday lenders will continue to thrive. They will just need to find a new advertising channel other than Google in which to spend their marketing dollars.
