Google Bans Payday Lenders from Placing Ads

Each year, millions of Americans use payday lenders to obtain what seem like quick and easy loans. Many borrowers simply need an advance on an upcoming paycheck, allowing them to settle their loan as soon as payday arrives. For those who don’t manage to repay on time, however, the situation can rapidly turn desperate. Along with a variety of fees, payday lenders often charge interest rates than can eventually top out in the triple digits. As a result, one small loan can transform into a mountain of debt if the borrower doesn’t repay within a matter of weeks.

Given these suspect circumstances, a number of organizations are seeking to limit the influence that payday lenders have on the public. Later this year the Consumer Financial Protection Bureau is expected to propose a cap on the amount of times a consumer can rollover a loan. The agency may also require lenders to perform credit checks on potential borrowers in order to verify their ability to repay. Still, turning these proposals into official regulations will likely take a while. In the meantime, some companies are taking matters into their own hands. Google, for instance, announced in May that it would ban all payday loan ads from its site.

Of the $40 billion worth of loans issued by payday lenders in 2015, approximately 40 percent were obtained online. Along with streamlining a potentially ruinous practice, online payday lenders often charge higher fees than physical outlets. Consumer advocates and civil liberties activists reached out to Google last year in order to convince the search giant to sever any advertising associations with these lenders. After all, Google earned $18 billion in advertising revenue in just the first quarter of this year, more or less making the company the ultimate authority in online marketing. Now any lender that charges interest rates of more than 36 percent will be banned from advertising on the site, representing an enormous victory for the anti-payday loan lobby.



  1. Should the government take a tougher stance on regulating payday loans? 
  1. What other forms of personal financing are available to individuals besides payday loans?



Source: Andrea Peterson and Jonnelle Marte, “Google to Ban Payday Loan Advertisements,” The Washington Post, May 11, 2016. Photo by Helen Cobain.

8 Responses to Google Bans Payday Lenders from Placing Ads

  • 1.) I think if the government is already taking a rough stance on regulating payday loans as people become more and more in debt if they seek to take out a loan and can’t afford to make a payment on time. Along with missing a payment interest rates gos up and cost people more money

    2.) some other forms of personal finicialing is saving money and being able to pay the money ahead of time to not risk of missing a payment

  • 1. Payday loans are taking a risk in lending to high risk borrowers and so in my opinion have the right to charge higher interest rates, if a person fails to pay the loan in a timely manner. I do not believe the government needs to regulate these any tougher than what is currently in place.

    2. There are currently personal loans an individual can take from Banks which are more regulated. Credit cards are also personal financing. 401 K loans can offer a personal loan you can repay yourself over time. Family and Friends are another option.

  • 1) I think the Government should take more advantage and also more of regulation payday loan because it not only help those in need but also those who already get help but need more benefits and tools to do so.
    2) Others forms that are giving is a chance to also the amount of time a consumer can do a loan so them are other benefits that are being brought about.

  • 1) I think the government should take a tougher stance and not allow the lending companies to charge the astronomical interest rates they charge. People who take out these loans do so out of desperation, and the payday loan businesses clearly take advantage of that.
    2) Some credit unions offer personal loans with a much lower interest rate, also there are some credit cards with lower interest rates as well, consumers must realize the importance of making payments on time to circumvent the accumulation of late fees.

  • 1. The government I feel is already taking a tougher stance on payday loans and I don’t think any of the regulations should be changed because it can only lead to make it easier for people to take out loans. All the responsibility shouldn’t only be looked that through the government because the borrower knows that they have to pay back the loan with interest so if they aren’t able to afford it then the loan should have never taken place and other options should be looked at.

    2. There are also personal loans, credit cards, but if those don’t work and you have time, simply save up your money until you can afford what you want.

  • 1. I believe that the government’s plans for regulation are appropriate for now. If someone is desperate and needs quick money, having the Payday lenders available is a nice option and that may come with a price of high interest. Although, giving high risk loans to anyone without much regulation or prior checking of eligibility does propose a potential issue. “Bad” loans hurt our economy.
    2. Some other personal financing options include credit cards, personal loans, savings or even investing your money. Some people who invest, allow their money to accrue interest essentially making them more money.

  • 1. I believe that the government has already taken a sizable stance on regulating payday loans. They have opened up the conversation on this issue and now it is up to the consumer to make financial decisions suitable to their lifestyle. This is obviously a large risk to the consumer, but the risk must be established before engaging into a payday loan.

    2. A few alternatives to a payday loan in personal financing are payment plans, credit card cash advance, paycheck advance, 401(k) loan, and of course, family and friends.

  • 1. I believe that payday loans are a down fall and people become reliant on them. They have to continually borrow and so if it were regulated with stricter guidelines people may have to find other ways to be able to spend money they don’t have.

    2. Other options could be a second job or another source of income. Normally people that get payday loans may not be able to get a credit card. Saving your money to buy things you want is a better solution all the way around.

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