Google has decided to stop advertising online payday loan companies in what they claim is an effort to protect their users from harmful lending practices and deceptive marketing of financial products.
Online payday lenders make short-term loans at high interest rates to people who usually are very desperate for quick cash. The loans are very hard to pay back, and often borrowers are stuck paying never-ending interest on a loan that only lasted them a couple of weeks at the most.
Payday loans are bad enough, but online payday loans make up 90% of the complaints to the Better Business Bureau about payday lenders. Because you’re sending an anonymous company your bank info over the internet, they can be fraudulent and even steal straight from your account.
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Google apparently doesn’t want to profit off this questionable practice, especially since the Consumer Financial Protection Bureau is expected to release new rules on payday lenders in the coming weeks.
So starting on July 13th, 2016, the company won’t sell search terms to any company making a loan due in 60 days or less. In the U.S., the company is banning ads from any lender charging interest rates higher than 36% per year, regardless of the duration of the loan.
The move is expected to cost the company as much as $5/click. In fact, payday loans are one of the most expensive search terms to advertise for on Google, because these companies make a lot of money off every visitor and are willing to pay top dollar for new borrowers.
As a Memphis bankruptcy lawyer I’ve seen a ton of clients over payday loans. Payday loans are a real problem in Memphis. A lot of times, you take out these loans when you’re already desperate. And for many of the people I see, it would be better to file bankruptcy than to take on another debt – especially one as dangerous as a payday loan.
I applaud Google’s efforts to protect consumers as they see fit, and I’m glad it’s raising attention to problem of online payday loans. But I also know a lot of people will still be affected by these loans.
If that’s you, you may want to consider bankruptcy to get rid of the debt you owe. Payday loan debt won’t just go away on its own.
My Memphis bankruptcy firm can help. Contact me today to discuss your situation for free.