Google, at the request of SECP has reviewed their policies and has now limited their platform to licensed digital lending companies only
Mobile phone users in Pakistan have been consistently facing a long-standing problem surrounding various loan applications that are scamming people in the name of low interest loans, blackmailing them with personal information and then demanding higher returns.
SECP in a previous statement said that loan companies performing these operations are illegal since they are running a lending business without a proper license.
In its fight against these illegal and unregistered loan companies, SECP has now joined hands with both Google and Apple.
Talking about the problem with journalists at the SECP headquarters, SECP representatives said that they are in contact with both Apple and Google, requesting them to remove and ban any unlicensed digital lending application from their platform.
Positive news has already started to flow in, since Google, at the request of SECP, has reviewed its policies and limited its platform to licensed digital lending companies only.
Google has a history of being cooperative with local laws and has accepted similar laws in countries such as India, Philippines, Kenya, Nigeria and others.
According to data from the SECP, a total of 58 unlicensed lending applications are reported for removal from the Playstore during January 2023, whereas a similar request was sent to Apple for 1 unlicensed lending app.
To prevent further scams, SECP has issued new rules which require licensed digital lenders to disclose their full corporate name and licensing status on their app, while also making sure that both their advertisements and in-app information are 100 percent genuine and do not intend to mislead users in any way or form.