SECP Blocks 8 More Rogue Loan Apps

FIA launched a massive crackdown on illegal loan apps back in 2023. Since then, the Securities and Exchange Commission of Pakistan (SECP) has been blocking the online rogue lending apps and canceling the registration of the respective companies. The regulatory body has already blocked 132 illegal loan apps, highlighting the substantial risks these platforms pose to consumers. Recently, it has blocked eight more illegal loan applications.

8 More Loan Apps Blocked In Pakistan

SECP sources claim that these recently blocked eight illegal loan applications were advertised through social media and email channels. The SECP highlighted that these unlawful apps manipulate personal information and acquire access to sensitive financial data. As a result, these apps raise concerns about possible financial fraud and privacy breaches.

The commission disclosed that users of these loan apps frequently become victims of blackmail. The rogue apps misuse people’s personal information to force them into repaying loans. That’s why, SECP has issued a warning to consumers, guiding them not to download loan apps from unknown links to protect their personal information.

Back in November 2023, the Cyber Wing of the Federal Investigation Agency (FIA) blacklisted 111 loan apps and also seized an astounding Rs 1.8 billion in interest. Initially emerging as a beneficial resource, these apps gave loans with nominal interest rates to students and unemployed individuals. However, over time, they found themselves entangled in absurd interest rates, leading to financial distress.

The expansion of online interest-based loan applications in Pakistan has had negative societal repercussions, with many people being affected. A significant number of educated individuals and students, who were initially lured by nominal interest rates, have since become intertwined in a cycle of ascending debt due to exploitative lending practices. So, this crackdown is quite necessary and is a very good initiative to safeguard people’s personal information.