It was in May, 2016 that Google announced their new rule of not promoting ads from payday loan lenders and high interest loan lenders. Both payday loans and other such high interest loans require you to repay the entire amount within 60 days of the borrowing date and they charge you interest rates as high as 35%. Such ads and endorsements would no longer be accepted by Google since July 13, 2016. Despite this rule, there are many who are still noticing such payday loans ads in Google search engine results, even after a week after the ban came into effect.
The execution of this ban by Google was delayed but gradually it is rolling out. This search engine giant posted a recent update to their advertisement policies in the AdWords help center covering various financial products like high APR loans, personal loans and payday loans on Wednesday. However you should note that this change in policy is only intended towards the US advertisers and not to anyone else of any other country. Their policy of short term personal loans has become a global thing.
The reasons for disapproving this ad
Payday loan lenders must be wondering about the reasons for such a change and disapproval towards their endorsement ads.
Payday loans are personal loans which are lent to borrowers with dire financial needs. When they are not approved by any other lender due to their credit, they seek help of such lenders. Such loans require full payment within 60 days from the date on which the loan was issued. This new policy from Google applies to advertisers who directly offer loans, to the lead generators and to those who connect consumers with third party lenders.
In the US, there is no permission for ads for personal loans where the APR or the annual percentage rate is above 36%. All such advertisers for personal loans should display their maximum APR, calculated in accordance with the Truth in Lending Act.
Hence, brand new ads for high interest and payday loans aren’t being accepted and Google will also remove any such existing ads from the system through the next few weeks. This is a process which may take time as Google is going to manually check the listed loan terms and the websites before deciding whether or not to disapprove ads.