The Wall Street Journal recently reported that Google implemented a new policy in August this year, prohibiting apps from providing personal credit with an annual interest rate of more than 36%. Tantamount to indirectly blocking a payday loan program with an annual interest rate of up to three digits, it provoked complaints from industry players.
In addition to general personal credit, the scope of personal credit also includes payday loans, P2P network lending and property loans. Google requires these programs to disclose the shortest and longest repayment period, the highest annual interest rate and examples of total loan costs for user evaluation. At the same time, it also prohibits the provision of personal credit in the United States with an annual interest rate of more than 36%.
Among the personal credits mentioned above, payday loans usually require up to three-digit annual interest rates. The new policy has stifled the listing of these programs on Google Play.
Google revealed to the media that the policy is to protect consumers from being exploited. But in fact, Google already blocked advertisements for loans with an annual interest rate of over 36% in 2016. This time it only further expanded the blockade from advertisements to programs.
The online lender alliance criticized Google’s move as being unfair in the business world. On the one hand, it harmed legitimate operators while on the other hand, it violated the rights of consumers seeking legal loans.