After several reports, the government’s Ministry of IT and Telecom has finally decided to take action against illegal loan apps, and banned over 40 of them, signalling just how widespread the issue had become.
As per a statement released by the IT and Telecom ministry on Monday, Federal Minister Aminul Haq also directed Pakistan Telecommunication Authority (PTA) Chairman Major General Hafeez-ur Rehman to take immediate action.
“43 applications have been blocked under the immediate implementation of the instructions,” read the statement, as PTA also seeks consultation and support from the Securities and Exchange Commission (SECP).
The ministry said that some companies are registered with the SECP.
While the apps offer quick, collateral-free credit to the largely unbanked, the boom has led to a surge in complaints about illegal lenders that routinely abuse customers’ data and use aggressive recovery tactics including threats and blackmail.
The SECP had by May received 1,415 such complaints against licensed digital lenders and 181 against unlicensed ones.
“The lending mafia is blackmailing simple people through Facebook and other social media platforms. A campaign should also be conducted to the awareness of consumers so that they do not become victims of the blackmailing mafia in this way.
“People should also file complaints of such applications with PTA, FIA Cybercrime and local police,” read the statement.
Haq also contacted the Director General Federal Investigation Agency (FIA) and took a briefing on the operations.
“Instead of waiting for complaints, the FIA cybercrime wing should take action against such elements automatically,” said Haq.
“It is necessary to suppress the elements that take advantage of the compulsions of the people. The return in millions against loans of thousands, threats, blackmail, use of personal data of the user, is against the law,” he said.
“Consumers should be influenced by online and social media advertisements and not share personal data with anyone. Whereas, precaution must be taken against various posts offering to earn dollars online. No money or information should be provided.”
Back in May, the Competition Commission of Pakistan (CCP) had warned the general public about the rising trend of mobile app-based micro-credit and nano loan facilities.
The commission launched an inquiry against such illegal apps where vulnerable consumers (lower/middle-income class) have made over 10 million downloads of such apps from their mobile phones in Pakistan.
The CCP had also urged the public to come forward and share information regarding these nano-loan mobile applications.
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