Google’s Misguided Advertising Ban Makes SACC Loans More Expensive
Aug 17 2016
Google’s misguided ban on "payday loan" ads makes loans more expensive and detrimental to consumers
Search engine giant Google recently implemented a global advertising policy which requires that certain terms and features of small loans showing on lenders' websites and advertisied through Google would be banned and lead to lenders' websites not being listed in Google online searches.
An article by finder.com.au has shown how "The Internet gatekeeper's attempt at global protection has driven up the cost of short-term loans in Australia"
Rather than protect Australian consumers from 'high-cost loans', Google's action has made it more difficult for lenders to advertisie and reach consumers with their SACC (small amount credit contracts) loans which have significant consumer protections built into them under Australian legilsation.
The article gives examples of how some lenders have had to alter their product offering shown on their websites in a way that makes their products more expensive just so that they could meet Google's advertising policy requirements.
Despite many contacts and meetings with Google by NCPA to explain about the highly regulated and safe SACC products in Australia, Google will not budge from it's global policy which is largely based on the problems that iexist in the in American and UK markets but which don't exist in the Australian market.
Australian Lenders have been highly reluctant to cave-in to Google's demands because they know their customers will be worse off and have to pay more for their loans under the Google imposed guidelines.
The full article can be read by clicking here.