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GeldStarting from July 13th, Google will no longer display ads for payday or high interest loans. According to the company, this is done in order to protect its users from high and unaffordable payments.

On its Public Policy Blog Google announces that beginning from July 13th it won't display ads for short-term (payday) and / or high interest loans. This means concretely that loans with an annual percentage rate (APR) of 36 percent and more as well as loans where repayment is due within 60 days will be banned.

David Graff, Director Global Product Policy at Google, writes:

"We’re banning ads for payday loans and some related products from our ads systems. 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 Google such loans can lead to unaffordable payments and high default rates. In order to protect its users the company has decided to no longer deliver ads for this kind of products. Not affected are companies offering loans such as mortgages, car loans, student loans, commercial loans as well as revolvimg lines of credit (e.g. credit cards).

 

Cover image © Alex - Fotolia.com

 


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