Giant tech company Google in its recent policy will restrict loan apps from accessing sensitive user data such as contacts, photos, etc, as it steps up to shun predatory behavior from most of these loan lenders.
The tech company wrote on its policy center,
“We don’t allow apps that expose users to deceptive or harmful financial products and services. For the purposes of this policy, we consider financial products and services to be those related to the management or investment of money and cryptocurrencies, including personalized advice.
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“If your app contains or promotes financial products and services, you must comply with state and local regulations for any region or country that your app targets, for example, include specific disclosure required by local law”.
Google will implement this policy starting in May next month. The tech company’s recent update is a result of an emerging trend common with most loan apps where they harass lenders who default in payment, by accessing their sensitive data, and informing their friends and family of outstanding debts, which is against lending policies.
Agents of these loan apps go as far as sending profanity-laden texts to most borrower’s contacts, in an attempt to humiliate them into paying the money borrowed. Unfortunately, most of these customers have succumbed to the pressure to pay back the loan by any means, which has also reportedly led to some going as far as committing suicide due to pressure.
Displeased by such behavior, Google has gone ahead to block hundreds and thousands of such loan apps from its Play Store, after it was alerted by law enforcement agencies and Central Banks of its illegal practices.
In an attempt to keep these loan sharks under control, Google has implemented rules for these loan apps in several countries such as Kenya, Pakistan, Nigeria, Indonesia, Philippines, and India, requiring them to submit proof of approval and other documentation from the appropriate government agencies.
In Pakistan, Google rolled out the requirements of carrying out specific licensing documentation for apps on the Play Store offering personal loans in the country to provide their ability to provide or facilitate credit. The company also made it mandatory for non-banking financial companies in the country to have only a single digital lending app on the Play Store.
All these strict measures put out by Google are coming after the tech company has been called out in previous years for not taking strict measures against predatory loan apps which have become a menace and have done more harm than good.
Google had reacted against a subset of loan apps that offered short-term loans under 60 days at very high-interest rates, marking them as predatory loan apps, and also went further to ban them from being listed on the Play Store. The tech giant has continued to intensify its policy against these loan apps, as it has also tightened its screening measures for these apps before they are permitted on the Play Store.