SECP strikes down
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), in coordination with Google, Apple and the PTA, has ensured removal of 120 illegal Loan apps from Google and Apple Stores.
The phenomenon of illegal personal Loan Apps has surfaced recently. It raised serious concerns about miss-selling, data privacy violations, and coercive recovery practices.
The SECP not only tightened its regulatory framework for licensed Non-Banking Finance Companies (NBFCs) but also initiated steps with the relevant authorities. Ultimately, it led to shut down of 120 unauthorized and illegal loan apps.
The regulator identified 120 unlawful personal loan apps and reported them to Google, Apple and the PTA. The apps were blocked and referred these to the FIA for further action under the Prevention of Electronic Crimes Act of 2016.
SECP regularly checks the Google Play Store and the Apple App Store for the presence of any illegal apps.
As a result of SECP’s efforts and continuous engagement, Google has introduced Pakistan’s Personal Loan App Policy. Now Google allow only SECP-approved Personal Loan Apps for placement on its Google Play Store.
The SECP officials advised loan borrowers to obtain loans only from licensed NBFCs. The SECP’s regulatory framework for approved Apps requires transparent disclosure of fees, loan duration, instalments, and charges.
Moreover, SECP has also initiated inspections of licensed NBFCs providing loans through Apps. The purpose is to verify that these are not engaged in miss-selling, breaches of data privacy, or coercive recovery practices etc.
In case of any complaints against licensed NBFCs, the people can file complaints at SECP’s dedicated complaint portal, https://sdms.secp.gov.pk/sdmsadmn/.
People can also report illegal Loan Applications or illegal investment schemes at SECP’s complaint portal.
