For more than a decade, broad-based coalitions at both the state and federal levels have united consumer advocates, labor, clergy, civil rights champions and others in calling for an end to predatory lending. Although 16 states and the District of Columbia effectively ban payday lending, the majority of the nation is still subject to triple-digit interest rates applied to debt trap lending.
Even in states that have interest rate caps on payday loans, the small-dollar loan industry has tried a series of legislative maneuvers, or even attempts at voter updates through ballot initiatives to overturn laws. In other cases, lenders have moved to longer-term versions of the typical two-week payday loan as yet another financial vulture preying upon working class citizens.
This week a global corporate giant took decisive action against payday lenders and others that charge triple-digit interest rates.
Google, the Internet’s leading search engine, announced that effective July 1 it will ban ads for payday loans and other loan products that require full repayment within 60 days. In the United States, Google will also ban ads for loans with an annual percentage rate of 36 percent or higher.
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