Google To Ban Payday Loan Advertisements

Google announced on May 11 that effective on July 13, 2016 it will ban all payday loan advertisements from its site.  Google was responding to concerns raised by consumer advocates who argued that the lending practice exploits the poor and vulnerable by offering them immediate cash that must be repaid at exorbitant interest rates.  Google joins Facebook in prohibiting such advertisements.  The decision marks the first time that Google has announced a global ban on advertisements for a broad category of financial products.

Consumers will still be able to find payday lenders from a Google search, but the ads that appear on the top and right hand side of a search results page will no longer show marketing from the payday lending industry.  Many low-income Americans use payday loans to get cash quickly while planning to repay the balance when they get their next paycheck.  But once a borrower has committed to a payday loan, he may end up facing unexpected financial