Google is banning adverts for payday lenders from its search results, adding the short-term loan industry to a blacklist that includes guns, tobacco and drugs, and dealing a bitter blow to the industry.
The internet giant announced that from mid-July it would ban payday loans from its AdWords system that displays adverts at the top of search results.
The move cuts off a crucial channel for many online-only lenders. Google’s dominant search engine is a key online storefront, with lenders bidding fiercely against each other for a prime position at the top of its results.
The announcement added to a series of setbacks to the industry, which has been criticised for extortionate interest rates and predatory behaviour. Since 2014 lenders have been limited in the interest rates and additional fees they are allowed to charge, and the number of short term loans has subsequently slumped.
"These loans can result in unaffordable payment and high default rates for users"Google's David Graff
Although Google’s policies prohibit a long list of illegal or offensive practices, it is very rare for a licensed and regulated industry to be expressly blacklisted.
“When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that,” Google’s director of global product policy David Graff said.
“This change is designed to protect our users from deceptive or harmful financial products.” He said any loans where repayment is due within 60 days would be banned.
The move was instantly criticised by the Consumer Finance Association (CFA), which represents short-term lenders.
“UK consumers enjoy a vibrant, highly competitive credit market and we will be interested to read the evidence that Google uses to justify overruling open market advertising of a legal, regulated industry to deny people freedom of choice,” the CFA’s chief executive Russell Hamblin-Boone said.
“Short term loans are a legal source of credit used by millions of people across the UK and the industry is highly regulated with a cap on the total cost of credit.”
Source: http://www.telegraph.co.uk
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Expect unconditional apology, not silence, CM Chandy to PM Modi after Somalia remark
Prime Minister Narendra Modi faced more heat on Thursday for comparing Kerala to Somalia with Chief Minister Oommen Chandy saying people of the state expected an unconditional apology from him and not his silence after it whipped up a controversy.
The comparison made by Modi at a poll rally in the state early this week when he said the “infant mortality rate among the scheduled tribe community in Kerala is worse than Somalia” has set off a political storm and triggered criticism in the social media.
Twitter users have responded with hashtag #PoMoneModi (Get lost Modi), a take off from the Mohanlal starrer, which features the famous punch line “Po Mone Dinesha” to ridicule some of the characters of his hit film ‘Narasimham’. Chandy flayed Modi for not withdrawing his controversial comment while CPI-M leader Kodiyeri Balakrishnan said his statement would result in a setback to BJP in the ensuing polls as it has insulted the people of the state. Kerala goes to polls on May 16.
In his Facebook post, Chandy said Modi had kept mum on the controversy and what Keralites want is not his silence, but an unconditional apology from the Prime Minister. “Prime Minister Narendra Modi left the election campaign rally without answering my questions. It could be due to the wide criticism he had received not only from the state, but also from Malayali community world over,” the senior Congress leader said.
- See more at: http://indianexpress.com
The internet giant announced that from mid-July it would ban payday loans from its AdWords system that displays adverts at the top of search results.
The move cuts off a crucial channel for many online-only lenders. Google’s dominant search engine is a key online storefront, with lenders bidding fiercely against each other for a prime position at the top of its results.
The announcement added to a series of setbacks to the industry, which has been criticised for extortionate interest rates and predatory behaviour. Since 2014 lenders have been limited in the interest rates and additional fees they are allowed to charge, and the number of short term loans has subsequently slumped.
"These loans can result in unaffordable payment and high default rates for users"Google's David Graff
Although Google’s policies prohibit a long list of illegal or offensive practices, it is very rare for a licensed and regulated industry to be expressly blacklisted.
“When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that,” Google’s director of global product policy David Graff said.
“This change is designed to protect our users from deceptive or harmful financial products.” He said any loans where repayment is due within 60 days would be banned.
The move was instantly criticised by the Consumer Finance Association (CFA), which represents short-term lenders.
“UK consumers enjoy a vibrant, highly competitive credit market and we will be interested to read the evidence that Google uses to justify overruling open market advertising of a legal, regulated industry to deny people freedom of choice,” the CFA’s chief executive Russell Hamblin-Boone said.
“Short term loans are a legal source of credit used by millions of people across the UK and the industry is highly regulated with a cap on the total cost of credit.”
Source: http://www.telegraph.co.uk
Keywrod - technology editors,technology,banks finance,google,standard,portal,companies,technology essay,future technology,technology news,technology in education,advantages of technology,technology articles,business accumen
Expect unconditional apology, not silence, CM Chandy to PM Modi after Somalia remark
Prime Minister Narendra Modi faced more heat on Thursday for comparing Kerala to Somalia with Chief Minister Oommen Chandy saying people of the state expected an unconditional apology from him and not his silence after it whipped up a controversy.
The comparison made by Modi at a poll rally in the state early this week when he said the “infant mortality rate among the scheduled tribe community in Kerala is worse than Somalia” has set off a political storm and triggered criticism in the social media.
Twitter users have responded with hashtag #PoMoneModi (Get lost Modi), a take off from the Mohanlal starrer, which features the famous punch line “Po Mone Dinesha” to ridicule some of the characters of his hit film ‘Narasimham’. Chandy flayed Modi for not withdrawing his controversial comment while CPI-M leader Kodiyeri Balakrishnan said his statement would result in a setback to BJP in the ensuing polls as it has insulted the people of the state. Kerala goes to polls on May 16.
In his Facebook post, Chandy said Modi had kept mum on the controversy and what Keralites want is not his silence, but an unconditional apology from the Prime Minister. “Prime Minister Narendra Modi left the election campaign rally without answering my questions. It could be due to the wide criticism he had received not only from the state, but also from Malayali community world over,” the senior Congress leader said.
- See more at: http://indianexpress.com
