Google Announces Ban on Personal Loan Apps from Accessing User Photos and Contacts

Google has announced new restrictions that will prevent apps that offer personal loans from accessing sensitive user data such as photos, videos, and contacts. The move is aimed at tackling predatory behavior from some lenders who harass borrowers. The search giant will update its Personal Loans policy on the Play Store on May 31, 2023.

Apps that provide personal loans or have the primary purpose of facilitating access to personal loans are prohibited from accessing sensitive data, such as photos and contacts, under the new restrictions. The change is in response to concerns that have emerged over the rising trend of harassment of individuals who have acquired credit via mobile apps. In some cases, debt collectors have allegedly accessed the borrowers’ personal contacts, informing friends and family of outstanding debts. In more extreme cases, agents have employed manipulated images to further intimidate and distress those in debt. Unfortunately, some of these individuals have succumbed to the pressure and committed suicide.

The move follows Google’s initial response to the problem, which was to block hundreds and then thousands of personal loan apps from the Play Store after being alerted by law enforcement agencies and central banks. The company also introduced rules to ban unlicensed loan apps from the Android app store.

Google has also introduced the requirement for apps offering personal loans in Pakistan to provide specific licensing documentation to prove their ability to provide or facilitate credit. Additionally, nonbanking financial companies in the country are now required to have only a single digital lending app on the Play Store. Developers who attempt to publish more than one digital lending app per nonbanking financial company risk the termination of their developer account and any other associated accounts.

The Android maker has faced criticism in the past for not taking strong measures against predatory loan apps. In response, the business updated its policies in the Indian, Indonesian, Nigerian, Kenyan, and Philippine markets.

In conclusion, Google has announced new restrictions for personal loan apps that offer loans to individuals. The restrictions prevent apps from accessing sensitive user data like photos, videos, and contacts. The move is aimed at tackling predatory behavior from some lenders who harass borrowers, and it will take effect on May 31, 2023.

Techno Sunilam

Techno Sunilam

Sunil is a skilled WordPress developer and SEO specialist with over 10+ years of experience in the industry. Sunil has a deep understanding of website development and search engine optimization, which allows him to create websites that are not only visually appealing but also optimized for search engines.

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