Authorities to continue crackdown against ‘loan shark apps’ in Pakistan: official
- Head PM Strategic Reforms Salman Sufi shares list of loan apps blocked by authorities so far
Salman Sufi, Head PM Strategic Reforms, said on Thursday that authorities will continue their operation and identify further loan apps that are “built for the sole purpose of citizen exploitation”.
“Federal Investigation Agency (FIA), Securities and Exchange Commission of Pakistan (SECP), and Pakistan Telecommunication Authority (PTA) continue to identify further apps which are built for the sole purpose of citizen exploitation and will continue to block- prosecute,” said Sufi on Twitter.
Sufi also shared the list of 43 “loan shark apps” that were identified by the SECP and blocked by PTA for engaging in predatory loan practices.
Earlier, after several reports, the government’s Ministry of IT and Telecom finally decided to take action against illegal loan apps, and banned over 40 of them, signalling just how widespread the issue had become.
“43 applications have been blocked under the immediate implementation of the instructions,” read the statement, as PTA also sought consultation and support from the 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.
Back then, 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.
The apps blocked by Pakistan in the latest crackdown include: Superb Loans, Asaan Qarza-credit loans, Sallam Loan-Online Loan App, Fair Loans, Fast Loan, Whale, Plati Loans, Harsha Tube-Quick Money, Zenn Park-Easy Instant Help, UrCash, Loanclub, Get Welfare, MyCash, Tazza Centre - Get Money Soon, LendHome, Debit Campsite, Aasan Lab-Easy Apply Money, QuickCash, Loan Credit Cash, CashCredit-Online Loan, MrLoan, Easy Mobile Loans, money bee, 567 Speed Loan, Fori Qarz Online Personal Loan, Galaxy Loan, Rico Box - Easy Apply Online, Easy Loans Credit Fast Pay, TiCash, Fori Instant Loans, Little Cash- Mobile Loans, CashPro-Immediate Approval, 99 Fast Cash Loan, FinMore- Online Credit Loans, Rose Cash-Loan Cash, Apple Qist Qarz. ZetaLoan- Easy Credit Wallet, HamdardLoan, BG Loan: Unsecured Loans, Qarza Pocket-Personal Funds, Bee Cash, Swift Loans - Fast Loan Disbur, Yocash.
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