Google cracks down on “predatory” payday lending ads
Google dropped a bombshell on the payday lending industry yesterday and announced that all banner ads on such “harmful” loans will face a blanket ban.
“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,” Google reported on its blog.
Payday lending has a reputation for being one of the worst loan products around, catching customers out when they are most vulnerable.
“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," said CEO of The Leadership Conference on Civil and Human Rights, Wade Henderson, to Google.
According to Henderson, the entire civil rights community is approving of the internet giant’s decision to crack down on payday lending banner ads, as they are “predatory”.
“We’ll continue to review the effectiveness of this policy, but our hope is that fewer people will be exposed to misleading or harmful products,” Henderson said.
Mozo is fully aware of how outrageous payday lending is in Australia. The financial comparison site recently found one payday lender was charging $380 per $2,000 borrowed over a 2 month period. At an average annual percentage rate comparable to 149%, that’s 7 times higher than the most expensive personal loan in the Mozo database.
Payday lenders will be disqualified from advertising on the Google banner ad platform as of July 13.
Whether you need a personal loan for a new car or kitchen revamp, don’t use a payday loan to finance it. Visit the Mozo personal loans hub instead to compare competitive rates, fees and features so you can pay it off with ease.