Payday Loan Ads Banned By Google
A shake up of the payday loan industry is coming. Not only is the government paying close attention to the fees and interest rates charged by payday lenders, but now news is in that Google is about to really shake things up.
Google’s May 11th Announcement
Effective July 13, 2016, Google is adding payday loan advertisements to the list of ads they will not allow on any Google page. Payday loans join other ads like drugs, guns, and sexually explicit items. This is the first time Google has banned anything related to banking or financial products. They join Facebook in the payday loan ad ban.
What This Could Mean
While a Google search will still bring up results relating to payday loans, people will no longer see payday lending ads on Google pages. Groups who are against payday loans hope this will affect the businesses’ bottom lines and drive people in need of payday loans away.
The Opposing Viewpoint
There is growing concern that for adults who do not qualify for bank loans will now face additional financial hardship. If an emergency occurs, these people will not qualify for a bank loan, and that can leave them without heat, access to a working car to get to work, or cash for urgent medical care.
There is hope on the horizon that the Consumer Financial Protection Bureau’s new rules coming out in 2016 may help ease the issues for both sides of the payday loan debate. It’s alleged that the new rules will require payday loan lenders to verify income and a credit report before approving a payday loan. Other efforts include lowering the interest rates, capping the number of loans a person can take out, and limit how many times a borrower could rollover their payday loan. No matter how things play out, it will change the payday loan industry in a big way and make it much harder for borrowers with poor credit to get the cash needed for unexpected emergencies.