Latest in Gear

Image credit:

Google takes a stand against predatory lending ads

In July, the company will stop showing ads offering payday loans with short repayment terms.
52 Shares
Share
Tweet
Share
Save

Sponsored Links

From July 13th, Google will ban adverts that promote predatory lending and other dubious financial products. In a blog post written by David Graff, the firm's director of policy, it's said that adverts for loans with repayment terms of less than 60 days will automatically be excluded. In addition, if a product in the US has an annual percentage rate of 36 percent or higher, it'll be blacklisted. Graff says that these loans can "result in unaffordable payment and high default rates," and that Google wants to protect its users from "deceptive or harmful financial products."

As income inequality worsens, the issue of financial companies taking advantage of people with very little money is being discussed more widely. Google quotes civil rights leader Wade Henderson as saying that predatory lending traps "customers into outrageously high interest loans." He added that these loans frequently target "those least able to afford it." It's not the first thing that Google has refused to advertise: it also won't promote topics relating to weapon sales, tobacco products and recreational drugs.

Google's willingness to wade into a policy issue raises something of a thorny issue with people on both sides of the aisle. On one hand, it's pushing a positive and responsible attitude towards not exposing its customers to what it perceives as harm. On the other, it's using its enormous power to dictate what is and is not appropriate behavior on behalf of both users and other companies.

It's a tricky time within the tech industry as politics becomes more of a prominent issue for many of Silicon Valley's biggest companies. Facebook -- which also banned gun sales -- has recently been sent a letter of concern by the senate after the social network was accused of censoring conservative news sources. In addition, Mark Zuckerberg has come under fire for using his lobby campaign to protest the presumptive Republican presidential nominee. However, at the same time, Zuckerberg has also pledged to sponsor the party's convention in July.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
52 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's 2019 Back-to-School Guide

Engadget's 2019 Back-to-School Guide

View
Tesla suspension update helps Model S and Model X high-speed driving

Tesla suspension update helps Model S and Model X high-speed driving

View
Singapore forgoes Tesla's electric 'lifestyle' for buses

Singapore forgoes Tesla's electric 'lifestyle' for buses

View
Chicago will test Samsung's DeX in-vehicle solution in cop cars

Chicago will test Samsung's DeX in-vehicle solution in cop cars

View
Apple warns against storing its titanium credit card in leather

Apple warns against storing its titanium credit card in leather

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr