Google is making changes and is not going to make it easy to take out very high-interest loans. Google Play removes applications that can be defined as usury under US law. Lenders are protesting against these activities.
Google doesn’t want apps to appear in their app store to take out loans on very unfavorable terms. In the Google Play store you could find a lot of such applications. However, the changes introduced by the company removed them. Moreover, it will not be possible for such applications to appear on the platform in the future. Google took care of it thanks to the relevant provisions in the regulations:
In the United States, we don’t allow applications that offer consumer loans with an actual annual interest rate (APRC) of 36%. or more. US consumer loan applications must display the maximum APRC calculated in accordance with the TILA (Truth in Lending Act). These policies apply to applications that directly offer loans or to acquire potential customers, and those that connect individual customers with external lenders.
Therefore, consumer loans that require full repayment within 60 days of the loan (which the company describes as “short-term consumer loans”) may not appear on Google Play. Applications enabling consumer loans must contain specific information in the metadata:
- Minimum and maximum repayment period.
- The maximum actual annual interest rate, which usually includes interest, fees and other annual costs, or a similar interest rate calculated in accordance with local laws.
- A model example of the total cost of credit, including all applicable fees
Google is banning usury apps, and lenders are protesting
It didn’t take long for the lenders to react. Companies that grant such loans indicate that they operate completely legally and do not harm anyone. They also add that many people used this loan to get out of trouble.