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By Martha C. White
May 11, 2016
Bloomberg—Bloomberg/Getty Images

Google announced Wednesday that it’s banning payday loans and some other lending practices it deems predatory from advertising on its site. On its public policy blog, the search giant said it was banning ads for loans with APRs of 36% or higher in the United States, and loans with terms that require repayment within 60 days of origination.

People looking for payday loans can still do Google searches for them, but as of July 13, the search results won’t include ads placed by Google’s ad systems for those kinds of products. The change also will not affect ads for other kinds of loans like credit cards, mortgages, student, business and car loans.

“Research has shown that these loans can result in unaffordable payment and high default rates,” the company said of high-interest, short-term loans. “Our hope is that fewer people will be exposed to misleading or harmful products.”

Consumer advocates praised the move, saying that payday loans take advantage of people in already-difficult financial situations and just make things worse for them by trapping them in a spiral of increasing debt.

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The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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