Google set to ban payday lender ads

Ryan J. Foley | AP

Google is banning ads for payday loans and some related products from its ads systems, according to a statement the company released on Wednesday.

Starting July 13, the company will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the U.S., it is also banning ads for loans with an APR of 36 percent or higher. The new policy will not affect companies offering loans such as mortgages, car loans, student loans, commercial loans, or revolving lines of credit (i.e. credit cards).

"Bad ads can ruin your entire online experience, a problem we take very seriously," the company stated in their blog.

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This policy is an attempt to decrease Google users' exposure to misleading or harmful products following research that showed these types of loans can result in unaffordable payments and high default rates, according to the statement.

Google has an established set of advertisement policies already in place, detailing prohibited content, restricted content, prohibited practices and editorial and technical requirements. In 2015, these policies prevented about 780 million ads — compared to 524 million ads in 2014 — for reasons ranging from counterfeiting to phishing.

Google will continue to review the effectiveness of this and all policies, taking user feedback into account, according to a spokesperson for the company.