The Securities and Exchange Commission of Pakistan (SECP) has shut down 120 online lending apps that were defrauding the public.
The SECP said that it had received complaints from citizens about the apps, which were charging exorbitant interest rates and engaging in other illegal practices.
The commission said that it had worked with Google and the Pakistan Telecommunication Authority (PTA) to remove the apps from their platforms.
It has also filed a case of electronic crime against the owners of the lending apps.
The SECP has warned the public to be wary of illegal loan apps and to only borrow money from licensed companies.
The SECP stated that the regulatory framework for licensed Non-Banking Finance Companies has been tightened, and the Federal Investigation Authority (FIA) was also approached for action against those behind these illegal loan apps.
Furthermore, Google has introduced a new loan App policy that will only allow SECP-approved loan apps for placement on the Play Store.
Earlier, a man in Rawalpindi committed suicide after being blackmailed by an online loan app.
It is pertinent to mention here that due to the crunch economic situation, many citizens apply for instant loans from online loan apps available on the Google Play Store and social media platforms, but they are trapping borrowers.
These apps are frequently advertised on social media platforms, claiming to provide instant loans to the masses, and when one applies for the loan, their ‘blackmailing’ begins.