Google has announced it will further tighten its policies for loan apps on its Play Store to protect users from predatory behaviour.
The Android maker plans to restrict apps that offer loans to individuals from accessing sensitive user data such as photos, videos, and contacts. The measure comes into effect May 31, Google said in an update on Wednesday.
– Why this matters
The move is aimed at protecting the privacy of borrowers in Nigeria and elsewhere who have been subjected to predatory behaviour from online lenders.
For years, digital borrowers have been subjected to harassment and abuse by debt collectors who have used their personal data to intimidate and shame them. The bullying had tragic outcomes including cases of individuals taking their lives.
Last year, the Federal Competition and Consumer Protection Commission (FCCPC) raided several digital loan companies operating in Lagos and elsewhere.
– Not only in Nigeria
Similar abuses have been reported in Kenya, India, Indonesia and the Philippines. At least 83% of smartphones in Africa use Google’s Android operating system. That is five times more than those using Apple’s iOS, according to web traffic analytics company StatCounter.
Google blocked hundreds of personal loan apps from its Play Store after being alerted by law enforcement agencies and central banks in those countries. The company in January introduced rules to ban unlicensed loan apps from the Android app store.
Nigeria’s FCCPC had earlier urged Google and Apple to remove from their stores money lending apps that had abused their customers and violated their rights.
Google said it has also introduced the requirement of carrying out specific licensing documentation for apps appearing on the Play Store offering personal loans in Pakistan to “prove their ability to provide or facilitate” credit. The company also made it mandatory for non-banking financial companies in the country to have only a single digital lending app on the Play Store.
The Android maker has been criticised in the past for not taking strong measures against predatory loan apps.
“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,” the company said in its new update.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.