Google plans to restrict personal loan apps' access to sensitive user data such as photos, videos and contacts, as the Android maker steps up its response to increased predatory behavior by some lenders harassing borrowers.
The search giant pushed through an update to its personal borrowing policy on Wednesday for apps on the Play Store to bring new restrictions that prohibit apps from accessing external storage, photos, videos, contacts, precise location and call logs. The change will take effect on May 31.
“Apps that provide personal loans, or have the primary purpose of facilitating access to personal loans (i.e., lead generators or facilitators), are prohibited from accessing sensitive data such as photos and contacts,” the company said in your update.
According to recent accounts, an emerging trend has raised concerns as certain people who have acquired credit through mobile apps have been harassed by debt collectors. These recovery agents allegedly accessed the personal contacts of the borrowers, informing friends and family of the outstanding debts. In more extreme cases, agents have used doctored images to further intimidate and distress debtors. Tragically, several of these select individuals have succumbed to the pressure and have taken their own lives.
These cases were well reported in markets like India and Kenya. Google initially responded by blocking hundreds and thousands of personal loan apps from the Play Store after being alerted by law enforcement agencies and central banks. The company also introduced rules to ban unlicensed borrowing apps from the Android app store.
Google said it also introduced a requirement to carry out specific license documentation for apps listed on the Play Store that offer personal loans in Pakistan to "demonstrate your ability to provide or facilitate" credit. The company also forced non-bank financial companies in the country to have a single digital lending app on the Play Store.
“Developers who attempt to publish more than one DLA per NBFC risk having their developer account and any associated accounts terminated,” Google said.
The Android maker has been criticized in the past for failing to crack down on predatory loaner apps. In response, the company introduced policy updates in markets including India, Indonesia, Nigeria, Kenya, and the Philippines.
