Google is updating its Personal Loans policies to restrict personal loan apps from accessing users’ sensitive data, such as photos, videos, and contacts. This move follows reports of harassment by debt collectors who access borrowers’ personal contacts and use manipulated images to intimidate and distress those in debt. The restrictions will come into effect on May 31 and will apply to apps on Google’s Play Store. Google has previously introduced policy updates in markets such as India, Indonesia, Nigeria, Kenya, and the Philippines to prevent predatory behavior by some lenders.
Google’s plan to introduce new restrictions for personal loan apps on its Play Store would prevent them from accessing sensitive user data. This move comes as a response to the rise of predatory behavior by some lenders who harass borrowers by accessing sensitive information, such as photos, videos, and contacts. The new update to the Personal Loans policy will take effect on May 31 and prevent apps from accessing external storage, precise location, call logs, photos, videos, and contacts.
The company’s update states 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.” The move by Google follows reports of harassment by debt collectors who access borrowers’ personal contacts, informing friends and family of outstanding debts. In some cases, recovery agents have used manipulated images to intimidate and distress those in debt, leading to tragic outcomes. These instances have been reported in markets such as India and Kenya.
Google has responded to these reports by blocking hundreds and thousands of personal loan apps from the Play Store after being alerted by law enforcement agencies and central banks. The company has also introduced rules to ban unlicensed loan apps from the Android app store. Additionally, Google has introduced a requirement for apps offering personal loans in Pakistan to carry out specific licensing documentation to prove their ability to provide or facilitate credit. The company has also made it mandatory for non-banking financial companies in the country to have only one digital lending app on the Play Store.
The Android maker has been criticized in the past for not taking strong measures against predatory loan apps. In response, the company has introduced policy updates in markets including India, Indonesia, Nigeria, Kenya, and the Philippines. With the introduction of new restrictions for personal loan apps, Google hopes to prevent further instances of harassment and predatory behavior by lenders.
It is worth noting that the new restrictions imposed by Google will only apply to apps on its Play Store, and not to third-party apps downloaded from other sources. This means that users should exercise caution when downloading personal loan apps from third-party sources and ensure that they are using reputable and licensed apps.
In conclusion, Google’s move to introduce new restrictions for personal loan apps on its Play Store is a step in the right direction in preventing predatory behavior by some lenders. By preventing these apps from accessing sensitive user data, the company hopes to prevent instances of harassment and intimidation by debt collectors. However, it’s important for users to exercise caution when downloading personal loan apps from third-party sources, these apps may not be subject to the same restrictions and regulations as those on the Play Store.
