Google has stopped loan companies that charge people high-interests from using their app. Loan companies that charge people over 36 percent interest are barred from using the app on the Google Play store. Payday loan companies often charge people interest rates that are in the triple digits.
A spokesperson for Google Play stated that they are focused on protecting people and keeping them safe. They also stated that they want to protect people from exploitative
practices. Google is one of the many companies that has made controversial decisions in order to help consumers.
Dick’s Sporting Goods and Walmart recently announced that they would restrict firearm sales in order to fight gun violence. Bank of America recently announced that they would stop doing business with people who run private companies. Brian Knight works at George Mason University as the director of innovation and governance. He stated that these changes show that a small number of companies have made a major change.
Not only has Google Play banned payday loans, but many states have also taken steps to prevent people from getting payday loans. Ohio and California have restricted high-interest loans. Gavin Newsome, who is the governor of California, recently signed a law that capped the interest rates on loans at 36 percent.
There are at least 12 states that have banned payday loans. Money Lion is known for charging people high interest rates. They will be able to stay on Google Play, but they will have to adjust their interest rates.
Mary Jackson works for Online Lenders Alliance as the chief executive. She stated that what Google is doing to lenders is unfair. She stated that it not only harms businesses, but it also harms people who are looking for a loan. Android users who use a non-Google source can still access high-interest loans.
Arisha Hatch is the vice president of a group called Color for Change. She is one of the people who pushed for the high-interest loan ban. She plans to push Apple to do the same.