Google profiting from ‘predatory’ loan adverts promising instant cash
Google is profiting from ads promoting “instant” cash and loans delivered “faster than pizza” despite a pledge to protect users from “deceptive and harmful” financial products.
The ads were served to people in the UK who searched terms like “quick money now” and “need money help” and directed users to firms offering high-interest loans.
One, listed in Google search results above links to the government website and debt charities, promised “cash in ten minutes guaranteed” for people with “very bad credit”.
The Advertising Standards Authority said last night that it was assessing 24 ads identified by the Observer, paid for by 12 advertisers including loan firms and credit brokers as well as suspected scam artists.
The regulator said many of the promotions were likely to break rules on socially responsible advertising which say ads must not “trivialise” taking out loans. “A disproportionate emphasis on speed and ease of access compared to interest rates is likely to be considered problematic,” its guidance says.
Google said the ads flagged with it violated its policies and had been removed. It previously pledged to tackle “predatory” lending promotions, banning ads for payday and high-interest loans in 2016.
The promotions appeared to clearly breach its policy, referring explicitly to “payday loans” and linking to websites offering ultra-high interest rates of up to 1721%. Many of the ads Google removed on Friday had been replaced by similar promotions within hours, some from the same advertisers flagged by the Observer.
This comes in the midst of a growing cost of living crisis, described by the Institute for Fiscal Studies as the worst financial squeeze in 60 years. Households are battling price rises on several
Read more on theguardian.com
