April 10, (THEWILL) – Effective May 31, 2023, digital lending apps will no longer have access to individuals’ confidential user information including contacts, photos, and videos, Google said in an updated policy for digital loan apps on Play Store.
The move, Google said, is to prevent inappropriate behaviour from lenders that threaten borrowers.
On Wednesday, Google updated its Personal Loans policy for Play Store apps, imposing new limitations that prevent apps from accessing external storage, photos, videos, contacts, the precise location, and call logs.
“Apps that provide personal loans, or have the primary purpose of facilitating access to personal loans (i.e. lead generators or facilitators), are prohibited from accessing sensitive data, such as photos and contacts”, Google said.
The modification will take effect from May 31. Google is stepping up its efforts to address the problem with this action.
Recent reports indicate a worrying trend in which some people who obtained credit using mobile apps have been subjected to debt collection harassment.
These debt collectors allegedly accessed the borrowers’ personal contacts and informed family members of unpaid debts.
Agents have used modified photographs more severely to intimidate further and torment persons who owe money.
Unfortunately, a number of those who were targeted have given in to the pressure. Many victims have complained that lenders have blackmailed them or harassed their friends and family using embarrassing or altered photos in places like India and Mexico.
After being notified by law enforcement and central banks, Google initially removed thousands of personal loan apps from the Play Store. The company also implemented regulations to prevent unregistered loan apps from appearing in the Android app store.
Google has recently updated its policies in several markets, including the Philippines, Nigeria, Kenya, Indonesia, India and Pakistan.
It directed all apps that advertise personal loans on the Play Store to submit particular licence papers to prove their ability to provide or facilitate credit.
“We’re introducing additional requirements for personal loan apps targeting users in Pakistan. Personal loan apps in Pakistan must submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans”, it said.
Last week, the Federal Government through the Federal Competition and Consumer Protection Commission (FCCPC), approved a total of 173 companies to provide digital lending services in Nigeria. Out of the 173 companies registered and approved by the Commission, 119 were given full approval, while 54 were given conditional approval.
