Vermont Business Magazine On May 11, 2016, Google announced that it will ban advertising for high-interest personal loans, sometimes referred to as “payday loans.” In 2014, as part of a statewide crackdown on high-interest lending, the Vermont Attorney General Office’s collaborated with Google. Over the past two years, Vermont identified for Google hundreds of online lenders who violated Vermont or other state law by: (1) charging excessive interest, often 300% APR or more; or (2) failing to obtain a license as required by Vermont and other states that regulate personal loans. Consequently, Google disabled advertising for the identified illegal lenders.
“I am pleased that Vermont led the states in working with Google to stop online advertising by predatory lenders,” said Attorney General William Sorrell.
Now, Google has taken a further step and simply banned advertising for all personal loans that charge over 36% annual interest or require repayment in under sixty days. The ban goes into effect July 13, 2016. Attorney General Sorrell applauded Google’s announcement: “Google’s advertising ban is a critical tool for consumer protection. The ban will prevent consumers from being deliberately targeted by the seller of a deceptive and harmful financial product.”
More information on illegal loans is available on the Attorney General’s “Illegal Lending” website.
Vermont AG: May 17, 2016