120 Online Loan Apps Blocked in Pakistan

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has blocked more 120 online loan applications in Pakistan, ARY News reported.

As per details, the SECP blocked 120 online illegal loan apps on Play Store in coordination with Google and PTA.

The applications were blocked for providing misleading information to customers. Complaints were also registered against these apps over privacy concerns and the recovery process of the amount.

The SECO stated that the regulatory framework for licensed Non-Banking Finance Companies has been tightened and the Federal Investigation Authority (FIA) was also approached for action against those behind these illegal loan apps.

Furthermore, Google has introduced a new loan App policy, which will only allow SECP-approved loan apps for placement on Play Store.

Earlier, a father-of-two Muhammad Masood in Rawalpindi committed suicide after being blackmailed by an online loan app.

The victim had acquired Rs22,000 – a resident of Rawalpindi’s Chakra area – from an online loan company. The people running the online loan company started blackmailing Masood.

After being fed up, Muhammad Masood committed suicide and recorded an audio clip before claiming his own life. A case was lodged at the Race Course station by the deceased man’s brother.

It is pertinent to mention here that due to the crunch economic situation, many citizens apply for instant loans from online loan apps available on Google Play Store and social media platforms, but they are trapping borrowers.

These apps are frequently advertised on social media platforms, claiming to provide instant loans to the masses and when one applies for the loan, their ‘blackmailing’ begins.