If you are looking to borrow a stack of cash immediately, you soon won't be able to find this type of loan ad on Google in the near future.
Google announced on Wednesday its plans to ban payload loan ads from its website as it continues to crack down on ads that mislead users.
Effective as of July 13, 2016, payday lenders, the companies that offer immediate cash loans, but with high interest, will no longer be allowed to place ads in Google's system.
Google said it is banning ads for loans where the person is required to pay the money back within 60 days of when the loan is issued globally, and in the U.S., the company is banning ads for loans with an APR of 36 percent or higher.
The company decided to update its ad policy to no longer tolerate these types of ads after finding that these loans were financially harmful for its users. What usually happens is a person who is in serious need of money will agree to the payday loan, only to find that they need to pay back triple the amount because of fees and interest rates.
"This new policy addresses many of the longstanding concerns shared by the entire civil rights community about predatory payday lending," Wade Henderson, president and CEO of the Leadership Conference on Civil and Human Rights said in a statement. "These companies have long used slick advertising and aggressive marketing to trap consumers into outrageously high interest loans — often those least able to afford it."
These types of ads have previously been banned on Facebook, but still appear on Bing and Yahoo.
However, this doesn't mean that all types of loan ads are now banned. Google said that credit card companies and those that offer student loans, car loans, mortgages and commercial loans will not be affected by this policy change.
Although Google relies heavily on ads for its revenue, it already bans ads for "products or services that enable dishonest behavior" like hacking software, as well as ads from counterfeit goods, dangerous products and ads that feature offensive or inappropriate content.
The Internet company revealed that, last year, it disabled more than 780 million ads that violated its terms.
Source: Google
