Pakistan Removes 120 Unauthorized Loan Apps from Google and Apple Stores
According to Dawn newspaper, in order to safeguard the public from falling into debt traps, Google and Apple stores in Pakistan have taken down a combined total of 120 illegal personal loan apps. Dawn is a renowned English-language newspaper in Pakistan.
The Securities and Exchange Commission of Pakistan (SECP) implemented the measure in collaboration with Google, Apple and the Pakistan Telecommunication Authority (PTA) following the recent rise in illegal personal loan apps raising concerns about data misuse. privacy violations and forced return practices.
Under the SECP, it has not only strengthened the regulatory framework for licensed non-banking finance companies (NBFCs), but has also taken effective measures in collaboration with the relevant authorities to shut down unauthorized and illegal loan applications.
According to Dawn, through vigilant monitoring and complaints received through the SECP’s complaint website, the regulator identified 120 illegally operating personal loan apps. It promptly reported these apps to Google, Apple and PTA for blocking and also sent them to FIA for further action under the Prevention of Electronic Crimes Act, 2016.
The SECP has stated that it regularly checks the Google Play Store and Apple App Store for illegal apps.
As a result of SECP’s efforts and continued commitment, Google has implemented Pakistan’s Personal Loan App Policy, whereby Google only allows personal loan apps approved by SECP to be listed on its Google Play Store.
Personal loan borrowers are advised to avail loans only from licensed NBFCs. According to Dawn, the SECP’s regulatory framework for approved applications requires transparent disclosure of fees, loan tenure, repayments and fees.
The SECP has started inspections of licensed NBFCs offering loans through apps to ensure that they are not involved in mis-selling, privacy violations, forced return practices, etc.
The commission has urged the general public to report any illegal loan applications or illegal investment schemes and also raise concerns about malpractices by licensed NBFCs by lodging complaints on the SECP’s complaint portal.
