July 27, 2023 (MLN): In a bold move to protect consumers and curb fraudulent practices, the Securities and Exchange Commission of Pakistan (SECP) has requested Google to take action against unregistered/fake loan-providing applications operating in the country.
As a result, Google is set to ban loan applications in question from its platform starting July 31, 2023, credible sources at SECP informed Mettis Link News.
The crackdown on these loan apps came in the wake of frequent complaints and a dreadful suicide case reported.
Lately, authorities have launched stringent actions against organized rackets that have been preying on inflation-hit people through social media apps, resorting to blackmail.
Earlier this month, the officials took significant measures against over 40 illegal loan apps, but the problem persisted. The Cyber Crime Wing of the Federal Investigation Agency (FIA) increased its efforts after the tragic suicide of a 42-year-old man named Muhammad Masood from Rawalpindi, whose financial suffering was connected to these manipulative loan apps.
Recognizing the gravity of the issue, the SECP advised debtors to carefully review the legal status of digital loan applications before signing up.
The SECP emphasized the importance of borrowers reading and evaluating all disclosures related to fees, late payment charges, loan tenor, cooling-off period, and the privacy policy of these applications.
To facilitate the process, a dedicated complaint portal had been allocated on the SECP's website.
