Google Is Banning These ‘Deceptive’ and ‘Harmful’ Ads

Photo (cc) by taberandrew

Google is banning all payday loan ads.

The search engine announced that, effective July 13, it will prohibit advertising for payday lenders in an effort to protect users from financial products it describes as “deceptive” and “harmful.”

In a blog post announcing the payday loan advertising ban, David Graff, Google’s product policy director, wrote:

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 percent 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.

In theory, payday loans are short-term, high-interest loans intended to help Americans who need a little extra cash to tide them over between paychecks. Unfortunately, many borrowers end up extending the loans because they can’t pay them off in full. Meanwhile, excessive interest and fees continue to accumulate, trapping consumers in a deep cycle of debt.

I could go on, but basically, payday loans are bad news and most often hurt those who are least able to afford it.

Google said it disabled 780 million “bad ads” in 2015 for reasons ranging from counterfeiting to phishing.

The payday loan ad ban won’t affect companies that offer car loans, student loans, commercial loans, mortgages or credit cards.

Although ads for payday lenders will no longer be seen on Google as of July 13, you’ll still be able to find payday lenders through a Google search. Facebook also prohibits payday lending advertisements.

The Community Financial Services Association of America — a trade group for payday lenders — called Google’s new policy “discriminatory and a form of censorship.”

“Google is making a blanket assessment about the payday lending industry rather than discerning the good actors from the bad actors,” trade group spokeswoman Amy Cantu said in an emailed statement. “This is unfair towards those that are legal, licensed lenders and uphold best business practices.”

The Consumer Financial Protection Bureau earlier this year proposed new regulations to rein in the payday lending industry.

I took out a few payday loans after college when I was making about $6 an hour and living paycheck to paycheck as a TV reporter. The interest rates and fees were so ridiculously high that after I paid the loan off, I was broke again and often forced to take out another payday loan. It truly was a vicious cycle, so I applaud any effort to rein in and regulate these predatory loans.

What do you think about Google’s decision to ban payday loan advertising? Sound off below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
11 ‘Disposable’ Items You Should Be Reusing
12 Easy Ways To Make Make Money Online Without Leaving Home
12 Easy Ways To Make Make Money Online Without Leaving Home

If you’re hanging around the house a lot these days — and who isn’t? — use your time to make some extra cash.

10 Places Where Social Security Offers the Best Standard of Living
10 Places Where Social Security Offers the Best Standard of Living

These U.S. counties offer retirees a chance to stretch their benefit checks while enjoying their golden years.

7 Surprising Things That Damage Your Credit Score
7 Surprising Things That Damage Your Credit Score

A seemingly small stumble can cause your credit score to plummet.

26 States That Won’t Tax Your Social Security This Year
26 States That Won’t Tax Your Social Security This Year

These states don’t tax any residents’ Social Security income whatsoever.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Rules Everyone Should Know by Now
7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

9 Shopping Mistakes to Avoid at Costco
9 Shopping Mistakes to Avoid at Costco

Are you missing out on serious savings at your favorite warehouse club?

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

They don’t make coffee makers like this anymore.

The 16 Cars Most Likely to Last 200,000 Miles
The 16 Cars Most Likely to Last 200,000 Miles

One automaker takes half the spots on a list of the longest-lasting vehicles.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

Is Writing a Check Still Safe?
Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

6 Ways to Protect Your Retirement Accounts From Hackers
6 Ways to Protect Your Retirement Accounts From Hackers

Imagine having $245,000 stolen from your retirement account — and not being reimbursed.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

This Is the Most Dependable Car Brand in the U.S.
This Is the Most Dependable Car Brand in the U.S.

This brand’s vehicles are least likely to give drivers repair headaches, according to J.D. Power.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Hidden Sections of Amazon Every Shopper Should Know
7 Hidden Sections of Amazon Every Shopper Should Know

These little-known departments of Amazon are gold mines for deal-seekers and impulse shoppers alike.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

Homeowners Say These 2 Kitchen Appliance Brands Are Best
Homeowners Say These 2 Kitchen Appliance Brands Are Best

One brand takes five of the top honors, while another ranks highest in three categories.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.