Tennessee Among 38 States that Allow Payday Lending
Stephanie Carson, Tennessee News Service
Nashville, TN – Starting in July, Tennesseans need of quick cash won’t see ads from payday lenders on Google. The search engine giant is changing its policy and prohibiting ads from lenders with quick payoff deadlines and high interest rates. Facebook already has a similar policy. Comments from Charlene Crowell, communications manager, Center for Responsible Lending.
Payday loans are still legal in Tennessee, but soon you won’t see ads from high-interest lenders when you’re surfing on Google. The global search engine says it’s no longer accepting advertising for loans with payoff deadlines of 60 days or less and high interest rates. The policy will take effect on July 13th, and Charlene Crowell with the Center for Responsible Lending says the online giant’s announcement could have a domino effect.
“Google is considered by many people to be a global leader in search engines, and the fact that they will begin banning ads for payday loans and other loans is just huge.”
Experts say removing payday lenders’ ability to advertise also removes the temptation for a market of people often desperate for cash. Payday lending is allowed in Tennessee and 37 other states, although the ads were also showing up in states where the practice is illegal, such as North Carolina. Opponents of Google’s policy change say it is discriminatory and that payday loans are among the only options for some consumers.
People will still be able to find payday lenders by doing a standard Google search, but the ads that appear on-screen will not show results-driven marketing for these loan products. Crowell says with the high interest rates and quick payback periods, payday loans aren’t winning propositions for most.
“Those who borrow are also more likely to become delinquent on other bills, delay medical care and in the worst scenarios, wind up filing for bankruptcy.”
There is discussion at the federal level to limit the amount of interest payday lenders can charge their customers. Facebook also has a policy against displaying payday lending ads.
Payday loans are still legal in Tennessee, but soon you won’t see ads from high-interest lenders when you’re surfing on Google.
This article originally appeared on Tennessee News Service.