Google is set to block apps that provide personal loans from obtaining permission to access users’ photos, videos, and contacts. This move aims to tackle the issue of predatory practices by specific lenders.
“We’re updating our personal loans policy to state that apps aiming to provide or facilitate personal loans may not access user contacts or photos,” according to Google, which says(Opens in a new window) the change goes into effect on May 31.
The updated policy of Google also requires country-specific licensing in Pakistan
In addition to prohibiting personal loan apps from accessing user contacts and photos, Google’s updated policy also requires country-specific licensing documentation to prove their ability to provide or facilitate personal loans in Pakistan. This move aims to ensure that lenders follow proper regulations and procedures when issuing loans to users in the country.
As reported by TechCrunch, borrowers in countries such as Kenya and India have experienced harassment from debt collectors after failing to repay their loans from mobile credit apps. By accessing the borrower’s contacts and images, debt collectors have resorted to sending manipulated photos to the friends and family of the debtor. Shockingly, this harassment has led to some borrowers taking their own lives.
To address this issue, Google removed hundreds of loan apps from the Play Store in Kenya and over 2,000 loan apps in India last year. The company has been working to prevent the proliferation of predatory lending practices and is taking steps to protect the privacy and security of its users. The updated policy is another step towards achieving this goal.
User’s data can be accessed with these loan apps providing personal loans
Google’s updated policy on personal loan apps will be rolled out in several markets that have been the hardest hit by predatory lending practices. These markets include India, Kenya, Indonesia, Nigeria, and the Philippines.
The policy aims to protect users in these countries by preventing personal loan apps from accessing their data, such as contacts and photos, which unscrupulous lenders and debt collectors can use to harass borrowers and their families. The requirement for country-specific licensing documentation also ensures that personal loan providers follow the appropriate regulations and procedures when issuing loans in these markets.
By implementing these changes, Google is taking steps towards addressing the issue of predatory lending and protecting the privacy and security of its users in markets where they are most vulnerable.
