Barely few days after Google announced that it has blocked the notorious payday loan initiative perpetrated by fraudsters, it has been found that its parent body is also allowing and investing in the scam lending service.
Alphabet GV which happens to be Google’s investment arm for venture-capital has been in support of LendUp even before it made a full launch in 2012 and has never ceased to provide to them as reported by Wall Street Journal.
LendUp sees itself as providing alternative for payday. They lure people with such terms like “get to $250 in 30 days,” “instant decision” and others just as is the same with other companies that lend loans based on high rates to enable people hold themselves together before payday. It is from this rate that LendUp makes charges of up to 400% APR.
The company does not operate from storefront, rather, it operates digitally, which has made it to have a very enthusiastic profile all over the tech media, which is not without some form of critique especially since it makes use of social media to prove that it is credit-worthy.
We were happy when Google added the company to its list of “dangerous products” to such other disreputable category as explosives, tobacco, guns, which served as a big blow to LendUp that is rated to worth $46 billion.
This people have been accused of dishing out small loans to people to pay back with high rates. By so doing they put people in a lot of debt that they are unable to pay for.
This ban by Google which is expected to go off come next July 13th, will also extend to loans that are supposed to be paid back in 60 days from the date it was issued out, which has 36% APR or even higher.
David Graf, global product policy director, Google, in his speech said that the move was aimed at protecting the users from financial institution or products that are not genuine.
The Leadership Conference on Civil and Human Rights, CEO and president, Wade Henderson, this will address concerns that communities of the civil rights have been complaining about payday lending companies that predatory. These kind of companies, he said, have been luring people with aggressive marketing and slick advertising in encouraging unsuspecting people into accepting loans that their interest rates are on the high side; making it difficult for such people to pay back the loan.
This latest plan to ban LendUp by Google from using its advertising services has caused the company’s executives big concerns.