SECP Removed 120 Illegal Loan Apps From Google Play and Apple App Store

The Securities and Exchange Commission of Pakistan (SECP), in partnership with Google, Apple, and the Pakistan Telecommunication Authority (PTA), has successfully removed 120 illegal loan apps from Google Play and Apple’s App Store. This move aims to protect the public from falling victim to dubious loan offerings that could lead to financial distress.

The SECP took this step because many unlawful personal loan apps were sparking worries over issues like misselling, violations of data privacy, and aggressive debt collection methods. To address this, the SECP strengthened regulations for licensed non-banking finance companies (NBFCs). It also collaborated with relevant authorities to take proactive measures to shut down unauthorized and illicit loan apps.

SECP Removed 120 Illegal Loan Apps From Google Play and Apple App Store

Using effective monitoring and complaints submitted via the SECP’s dedicated complaint platform, the regulator detected 120 unauthorized personal loan apps. They also notified Google, Apple, and the PTA to block them. These cases were also referred to the FIA for additional action under the Prevention of Electronic Crimes Act of 2016. The SECP continues to conduct routine assessments of the Google Play Store and Apple App Store to identify and address any illicit applications.

Google has implemented Pakistan’s Personal Loan App Policy. This policy will ensure that only SECP-approved personal loan apps are allowed on the Google Play Store.

SECP emphasized that individuals seeking personal loans should exclusively approach licensed NBFCs for borrowing. The approved apps under SECP’s regulations must provide clear information about fees, loan terms, instalments, and charges. SECP has also started examining licensed NBFCs that offer app-based loans to ensure they adhere to ethical practices, avoiding misselling, data privacy violations, and forceful recovery tactics.

SECP encourages the public to lodge complaints against licensed NBFCs through its designated complaint portal. Additionally, individuals can report unlawful loan apps or investment schemes via the SECP’s complaint portal.

See Also: SECP Introduces New Set Of Rules For Online Loan Apps