An article in the Washington Post by Andrea Peterson @kansasalps and Jonnelle Marte @jonnelle discusses the new Google Adwords policy taking effect on July 13, 2016.

According to the article, Google’s decision to ban predatory payday loans at interest rates above 36% came in part after pressure from a coalition of civil liberties, consumer protection, and privacy groups.

Google Bans Predatory, High-Interest Payday Loans from their Ads

The world’s number one search engine and visited website took a huge step towards consumer protection when it decided to no longer display paid ads on its entire network for the payday loans providers.

The article quotes David Graff (Google Global Product Policy Director) from a blog post:

We’ll continue to review the effectiveness of this policy, but our hope is that fewer people will be exposed to misleading or harmful products.

Payday loans are generally used by low income individuals who do not have access to credit or whose credit access has reached a limit to supplement their income to pay for items they need immediately. The payday loan is a vehicle for those without disposable funds to pay for unexpected expenses.

Unfortunately, consumers of these high-interest, short-term loans find themselves in a loop which they cannot escape, continually renewing the loans or finding themselves unable to make the payments, driving them into higher debt, and minimizing their ability to obtain good credit.

Facebook already bans the payday loan ads from their network, while the ban on Google Ads starts mid-July. This means that both search and web giants are willing to take a monetary loss (albeit minimal in their grand scheme) in order to “protect” consumers from ads which they deem may be more harmful than good.

Both Google and Facebook already ban sex and guns, but this general ban of an industry has the Payday loan industry calling the ban “discriminatory.

Facebook and others are making a blanket assessment about the payday lending industry rather than discerning the good actors from the bad actors,” the Community Financial Services Association of America, a payday lending trade group, said in a statement. “This is unfair towards those that are legal, licensed lenders.”

We at Credit Pathway have always recommended to our clients that the best solution for them and their business is to take long-term, financially-wise steps that will not just help this week, but years down the road. Here is a short list of recommendations:

  1. Fix your credit – it all starts here. If you don’t have a clean credit history, you don’t have access to low-interest credit.
  2. Maintain your credit usage below 45%. Don’t overextend on your cards or you will be unable to obtain new credit when you need it.
  3. Make you payments on time every month. Setup automatic payments and never miss a payment. Building good credit history is key.
  4. Purchase what you can afford. You may need a car, but if you can’t afford a luxury vehicle, don’t stretch yourself thin just to get one.
  5. Stay away from high-interest loans or rent-to-own schemes. These loans or payment plans only benefit them.

Get a line of credit. Go to your bank a get a line of credit for your business so you don’t have to use all your own personal credit to stay afloat. If you don’t have the history to get a line of credit from a bank, take a look at our application for a line of credit at 0% APR for 12 months. There are better options out there than payday loans, talk to a Credit Pathway representative to see how we can help you.

payday loans, google, ban

To read the entire Washington Post article visit:
https://www.washingtonpost.com/news/the-switch/wp/2016/05/11/google-to-ban-payday-loan-advertisements/

Why Credit Pathway?

From no credit inquiry equipment financing to asset financing to simply funding you based on your revenue or personal credit or even a personal credit partner, we have solutions for all including bad credit and no credit. Grab Ahold of our 0% APR Line of Credit for the First 12 Months Up to $160,000 with a Lifetime Rate as Low as 7.99%. Zero Income or Asset Documentation is needed for our Start-Up Funding. Get funded with 100% confidence and security while avoiding the numerous time and finance traps

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