43 Predatory Lending Apps Blocked

43 Predatory Lending Apps Blocked
The Ministry of Information Technology and Telecommunication (MoITT) has taken a big step by initiating a crackdown on unlawful lending applications operating in the country, The News reported on Tuesday.

43 applications in this category were therefore immediately prohibited. Federal Minister for IT and Telecommunications Syed Amin Ul Haque said that the government has quickly put the directives to restrict these applications into action.

The minister also underlined the necessity of starting an awareness campaign to shield people from falling for such deceptive practices.

According to MoITT, the IT minister also spoke with the FIA and instructed them to take legal action against such individuals rather than wait for complaints.

Scammers are increasingly releasing "easy loan" applications on the Google Play Store and Apple iStore; however, despite how simple and convenient the loans may appear given that they don't demand substantial paperwork, these applications are proving to be a danger to many individuals.

Another fraud has come to light as a result of the suicide of an unemployed man in Rawalpindi earlier this week.

His story is becoming more common as more of the 220 million people in the nation resort to dozens of mobile-based lenders, providing a haven for scammers and fraudsters, according to consumer protection and digital rights organizations.

According to a poll conducted earlier this year by NGO Karandaaz Pakistan, the percentage of Pakistanis using personal finance apps more than quadrupled to 19% in 2022 from 7% two years earlier, reflecting a rise in smartphone use and enhancing the country's low rates of financial inclusion.