Google, at the request of the SECP, revised its policies and now limits its platform to licensed digital lending companies.
Mobile phone users in Pakistan are facing a long-standing concern about various loan apps that blackmail people with personal information and cheat them in the name of low interest loan and then demand higher repayments.
According to the SECP, these loan companies are illegal since they are operating without proper licensing. To combat this, the SECP has been in talks with Apple and Google to ban unlicensed digital lending applications from their platforms.
Google has already taken positive steps towards addressing the issue. At the request of the SECP, Google has reviewed its policies and has now limited its platform to licensed digital lending companies only. This move has been welcomed by the SECP, which has been working hard to eradicate illegal and unregistered loan companies from the market.
Google has a history of complying with local laws and has previously accepted similar laws in countries like India, the Philippines, Kenya, Nigeria, and others. This positive move by Google will help to ensure that mobile phone users in Pakistan have access to legitimate digital lending companies only, which will help to prevent further scams and frauds.
According to data from the SECP, a total of 58 unlicensed lending applications have been reported for removal from the Playstore during January 2023. A similar request was sent to Apple for one unlicensed lending app. This clearly highlights the scale of the problem in Pakistan and the need for urgent action.
To further tackle the issue, the SECP has also issued new rules that require licensed digital lenders to disclose their full corporate name and licensing status on their app. This will ensure transparency and will help users to identify legitimate digital lending companies. Additionally, digital lenders will be required to ensure that both their advertisements and in-app information are 100% genuine and do not mislead users in any way.
The measures taken by the SECP, Apple, and Google will help to prevent further fraudulent loan applications from operating in Pakistan. It is vital that mobile phone users exercise caution while using loan applications and verify the credentials of any digital lending company before entering into any financial agreement.
Conclusion
the move by Google to limit its platform to licensed digital lending companies only is a welcome step in the right direction. This action will help to protect mobile phone users in Pakistan from fraudulent loan applications and ensure that they have access to legitimate digital lending companies only. The SECP’s efforts to combat illegal and unregistered loan companies, coupled with the cooperation of tech giants, will help to make the digital lending market in Pakistan more secure and transparent.
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