Google removes lending apps in India to protect consumers

Monitoring Desk

MUMBAI (Reuters) – Alphabet Inc’s Google has removed lending apps aimed at consumers in India from Play Store in an attempt to safeguard users, it said in a blog post on Thursday.

“We have reviewed hundreds of personal loan apps in India, based on flags submitted by users and government agencies,” Suzanne Frey, Vice President, Product, Android Security and Privacy said in the post.

A recent investigation by Reuters found at least 10 lending apps on Play Store breached Google’s rules on loan repayment lengths aimed at protecting vulnerable borrowers. It also found that a number of the lending apps also flouted central bank regulations aimed at protecting borrowers..

Google did not elaborate on the number of apps that had been taken down.

The online lending industry has come to the attention of the authorities after at least two suicides in the past month linked to alleged harassment by recovery agents of such apps.

The Reuters review of 50 popular lending apps available also found nearly all required borrowers to give them permission to access their phone contacts which users allege are used by recovery agents in the case of defaults or late payments.

Google said developers must only access permissions that are necessary to implement current features and services.

“They should not use permissions that give access to user or device data for undisclosed, unimplemented, or disallowed features or purposes,” Google said in its post.

It said it would ensure apps complied with local laws and regulations. “Apps that fail to do so will be removed without further notice,” it said.

On Wednesday, the central bank formed a working group to look into digital lending practices. The panel has been tasked with identifying risks posed by unregulated digital lending to financial stability, regulated entities and consumers and is expected to submit the report within three months..

Courtesy: Reuters