Google removes 5 rogue lending apps

Google removes 5 rogue lending apps

Anam.Ajmal@timesgroup.com

New Delhi:17.11.2020

Several digital lending applications, unauthorised by any financial regulator, were available for download on Google Playstore for over three months. These apps, whose names resembled legit companies, offered users short-term credit at very high interest rates and then, in some cases, harassed or abused the borrowers for repayment. Following queries sent by TOI to Google, the technology giant took down at least five of them.

“Such unauthorised apps grew during the lockdown when people needed quick cash. The apps’ names resembled legit companies. Many people did not know how to distinguish between the two. They were downloaded by at least 400,000 to 1million people,” said fintech researcher Srikanth L, who studied at least 10 such apps.

TOI tried reaching out to the numbers listed on the nowdefunct apps, but they were unreachable. Those taken down by the technology giant include Ok Cash, Go Cash, Flip Cash, ECash and SnapItLoan.

“Our Google Play Developer Policies are designed to protect users and keep them safe, and we recently expanded our Financial Services policy to help protect people from deceptive and exploitative personal loan terms. When violations are found, we take action,” a Google spokesperson told TOI on Friday.

According to Google’s policies, if any app “contains or promotes financial products and services”, it must comply with state and local regulations for any region or country. However, Srikanth’s research showed these apps had their servers hosted on Alibaba cloud, a Chinese company.

“A common feature among these apps is that they have no legal entity in India. It is possible some money is laundered through this as all these transactions will be outside RBI’s regulatory purview,” said Srikanth, a coordinator at citizen led collective Cashless Consumer, which raises awareness about digital transactions.

Full report on www.toi.in

Times View: Such rogue apps bring misery to the financially needy and the unsuspecting. They must be brought under regulation. Google too should monitor their functioning and take suo moto action against them.

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