google payday loan ad policy August 21, 2016Posted by Bradley in : consumers , trackback
Earlier this year Google announced that it would be banning certain payday loan ads. Today I searched for payday lending and at the top of the results page were 3 ads. The top one was for Big Picture Loans. That also happens if I search for “need money fast,” or even “borrow money.” The page the ad link takes me to says this:
Annual Percentage Rate (APR) may vary based on when your first payment is scheduled, pay frequency, total loan duration, and the amount funded. Your payment schedule will be included in the Truth in Lending Act (TILA) section of your Loan Agreement. You can reduce finance charges by paying more than your minimum scheduled amounts. There are no prepayment penalties. Typical installment loan APR Range based on an initial payment scheduled 21 days from the effective date of the loan and all payments thereafter being every 14 days: 780.03% – 788.62%. Click Rates to view our loan and APR calculator and payment schedules. Returned payments, late payments and non-payments may result in additional fees or charges to your account pursuant to the terms of the loan agreement and as allowable under Tribal law and may result in additional fees from your financial institution. If you default on your loan, we may report the account status of your loan to a consumer reporting agency, which could have a negative impact on your credit report. This is an installment loan product, therefore, loans do not automatically renew. For more details, please refer to the loan agreement.
A month after the policy was supposed to come into effect and I think this ad violates or should violate any sensible payday loan policy. The ad does refer to installment loans – a potential weakness in the Google policy I identified in May. But the specified APR is so high that in itself it should result in the ad not being shown, shouldn’t it?