As the maker of Android steps up its response to the rise of predatory behaviour from some lenders who harass borrowers, Google plans to restrict the access of apps that provide loans to individuals from obtaining sensitive user data such as photos, videos, and contacts.
This is part of Google’s plan to constrain apps that offer loans to individuals from obtaining sensitive user data.
The search engine behemoth released an update to its Personal Loans policy on Wednesday for apps that are available through the Play Store. This update included new restrictions that prohibit apps from accessing external storage, photos, videos, contacts, precise location, and call logs. The modification will become effective on the 31st of May.
The company stated in its most recent update that “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.”
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Allegations that caused Google to act
Some people who have obtained credit via mobile apps have reportedly experienced harassment from debt collectors, which is a new trend that has raised concerns. According to recent accounts, this emerging trend has raised concerns.
According to the allegations, these debt collectors gained access to the borrowers’ personal contact information and informed their friends and family about the outstanding debts.
In more extreme instances, agents have been known to use manipulated images as a means of further intimidating and distressing those who are in debt. Unfortunately, some of the people who were being targeted have given in to the pressure and committed suicides as a result of it.
The Global Impacts
These incidents received a lot of coverage in the media in the markets of India and Kenya. After receiving information from various government agencies and central banks, Google initially reacted by blocking hundreds, and then thousands, of personal loan apps from being downloaded from the Play Store.
Additionally, the company implemented regulations to prevent unlicensed lending applications from being distributed through the Android app store.
Apps that appear on the Play Store offering personal loans in Pakistan will now be required to “prove their ability to provide or facilitate” credit before they are allowed to be listed there, according to Google, which has also stated that it has mandated the submission of particular licensing documentation as a condition for their inclusion.
In addition to this, the company mandated that all non-banking financial institutions in the country are required to have only a single digital lending app available on the Play Store.
“Developers who attempt to publish more than one DLA per NBFC risk the termination of their developer account and any other associated accounts,” according to a statement made by Google.
The company that makes Android devices has in the past come under fire for being slow to implement protective safeguards against predatory lending applications. As a direct result of the situation, the organisation revised their policies and implemented them in the markets of India, Indonesia, Nigeria, Kenya, and the Philippines.