SECP warns public to avoid unauthorized lending apps

February 14, 2023 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has warned the public about falling prey to unauthorized lending apps, namely "MoneyBox" and "MoneyClub," as per the statement issued by the commission on Monday. 

The SECP has observed that the apps are using the names of licensed Non-Banking Finance Companies (NBFCs) to gain public confidence in offering lending services without any regulatory approval, the statement added. 

SECP has not granted any permission to its licensed NBFCs, QistBazaar (Pvt) Limited and QistPay BNPL (Private) Limited, to launch the apps namely "MoneyBox" and "MoneyClub," respectively, the statement clarified. 

No licensed entity has approached SECP seeking permission to launch apps with these names, it revealed.

This unauthorized activity poses a serious threat to the public, as these apps have been operating without regulatory approval, it warned. 

The commission maintains a publicly available list of licensed NBFCs and digital lending apps that have the SECP's permission to offer lending services. The public is encouraged to verify the regulatory status of any NBFC and its authorized app before transacting any business with a lending entity, it noted. 

The SECP is acting to protect consumers and promote fairness and transparency in the financial services industry.

It is notifying law enforcement agencies to take legal action against the operators of these apps. The SECP advises the public to only use authorized apps offered by entities licensed to operate in Pakistan.

Copyright Mettis Link News