Google to ban payday lending ads, calling industry ‘harmful’

Google’s decision could have as much or even more impact on curtailing the industry than any move by politicians, as many payday loans start with a desperate person searching online for ways to make ends meet or cover an emergency.

The ban would not impact companies offering mortgages, auto loans, student loans, loans for businesses or credit cards, Google said.

Payday lenders have long been a target of criticism by politicians and consumer advocates, who argue the industry charges extremely high interest rates to customers, who are often the poor.

“There is nothing fair about triple-digit interest rates being charged on loans to working families,” said Keith Corbett, executive vice president with the Center for Responsible Lending, in a statement.

In response to critics, the payday lending industry has long argued it provides a necessary financial service to people in need of emergency funds.

When several states capped the interest rates on payday loans, the industry pivoted into loans tied to auto titles or moved their operations onto Indian reservations.

[...] Google’s announcement will likely have more of an impact than any new regulation.

Under this ban, users searching for words like “loans” or “places to get money” will no longer pull up ads from payday lenders in the advertising section of the search results.