Google has added advertisements for payday loans to its banned “dangerous products” list, alongside drugs, tobacco and guns. Google said that the terms of such loans trap vulnerable borrowers in debt. Any loan that has an annual percentage rate (APR) of 1,000 percent or above and a repayment period of 60 days or less will be categorised as a pay day loan and banned from 13 July 2016. Although advertisements for such loans will no longer be accepted, information about them will be available in search results. Google has not revealed the anticipated financial cost of the ban.
Google has added advertisements for payday loans to its banned “dangerous products” list, alongside drugs, tobacco and guns. Google said that the terms of such loans trap vulnerable borrowers in debt. Any loan that has an annual percentage rate (APR) of 36% or above and a repayment period of 60 days or less will be categorised as a pay day loan and banned from 13 July 2016. Although advertisements for such loans will no longer be accepted, information about them will be available in search results. Google has not revealed the anticipated financial cost of the ban.