海角大神

No more Google ads for payday loans: consumer protection or censorship?

The search giant will ban payday loans from its ad system starting in July, it announced Wednesday. 

As government regulators seek to听further restrict the contentious practices of certain payday lenders, Google wasn't interested in听waiting.听听

The search giant will听听starting in July, it announced Wednesday.听听

The听act has drawn听praise听from听consumer protection, civil liberty and privacy advocates because payday loans听are听said to听prey on low-income borrowers, who can become entangled in a听vicious web of missed payments, with interest rates that can be more than 700听percent.

But, the lending industry, in its backfire against the announcement, has raised a听question:听Should听Google, or any search engine or social media website,听suppress content?听听

The Community Financial Services Association of America (CFSA), a trade association for the payday lending industry, has called the move ""

"The Internet is meant to express the free flow of ideas and enhance commerce," a spokesperson for the CFSA told WIRED. "Google is making a blanket assessment about the payday lending industry rather than discerning the good actors from the bad actors. This is unfair towards those that are legal, licensed lenders and uphold best business practices, including members of CFSA."听

Google said it will ban听certain听types听of payday loans, particularly听ones that must be repaid within 60 days or听with interest rates of 36 percent or higher, according to the听announcement from David Graff, Google's director of product policy. It will become听effective听July 13. Although听lenders will no longer to be able to advertise on the search engine, users听will听still be able to search for them. 听

This is far from the first time Google听has restricted content from its ad system or search engine. It has prohibited ads for illicit听activities such as the sale of听, and limited activities that are sexually explicit or graphic in nature, as The Washington Post reports. In 2015 alone, Google disabled听, including ones for听weight loss scams, phishing and unwanted software.听But Google's most recent policy will be the first time it will globally ban听ads for a听"broad category of financial products,"听according to the Post.听听

"Ads for financial services are a particular area of vigilance given how core they are to people's livelihood and well being," wrote Graff. "When ads are good, they connect people to interesting, useful brands, businesses and products. Unfortunately, not all ads are."听听

Payday loans are short-term听loans, often听, according to the Consumer Financial Protection Bureau. The loans听are frequently for $500 or less.听Although听they offer fast cash to low-income earners, they can come at a price, mainly听high interest rates. The average yearly interest rate of lump-sum loans听was听650 percent, the Pew Charitable Trust found in 2012, while online installment loans, which are paid back in smaller increments, .

Internet payday loans often automatically withdraw from a borrower's account, which, if the account is听overdrawn, can slam a borrower with bank penalties. The average听听from online payday loans is $185, according to the Consumer Financial听Protection听Bureau (CFPB).听听

The CFPB, which was created by President Obama in response to the recession, is expected to release further regulations to restrict the industry later this year. State legislatures have targeted some practices, but the industry has frequently managed to find work-arounds, as the Associated Press reported.听

Opponents听to government intervention, however, have said the limits amount to paternalism.听

"Americans don't need their money managed by paternalist politicians," Tim Miller, writing at the time as a spokesperson for the Center for Consumer Freedom, a nonprofit听promoting personal responsibility and consumer choices, said in a 2008听opinion article for 海角大神. 听

"Government should instead trust that, when given personal freedom and the maximum amount of options, consumers can decide how to responsibly use their money themselves," he wrote. 听