Thursday May 19, 2016

Google Bans Payday Ads, But Also Backs A Payday Lender

This has to be awkward. How can you ban payday loan ads to protect people from "deceptive or harmful financial products," while you are heavily invested in a payday loan company?

GV, the venture-capital investment arm of Google’s parent company, Alphabet Inc., has been investing in online lender LendUp since before the startup launched in 2012. The company provided capital for every equity round LendUp has since done. Last week, Google announced it was banning payday-loan ads from its site in response to growing consumer-advocate concerns about the lending practice. The Consumer Financial Protection Bureau is also expected to release proposed rules for the payday-loan industry this spring that could wipe out a large share of that industry.