Loan apps in Pakistan banned recently with the likes of FIA initiating large-scale crackdowns, resulting in many office shutdowns and app removals from the Google Play Store.
Speaking of Google, the search engine giant has also launched stricter policies against these apps in collaboration with the Securities and Exchange Commission of Pakistan (SECP).
If you have been keeping up with these apps, you would know that the suspicion is not uncalled for. They do collect a dubious amount of data after all. Here are the details.
Too Many Permissions
Some popular loan apps, including those approved by the Securities and Exchange Commission of Pakistan (SECP), demand an unusually extensive array of permissions, even for simple tasks. One such example is Barwaqt, a well-known loan app, which asks for access to sensitive areas of your phone, including your entire photo gallery, contact list, app usage data, and personal information.
The screenshot below has been taken from Barwaqt’s Google Play Store page.
Unlike other popular apps like JazzCash and Easypaisa, which do not disclose their required permissions on the app store, you can view the complete list of necessary permissions only after downloading their apps on your phone.
As you can see, these apps require a whole lot of data from you too. Granted, you can always choose to disallow any of this data collection on modern versions of Android, but their existence in the first place is highly questionable. Keep in mind that these apps have more than 70 million downloads on Android combined.
Other SECP-registered apps including EasyLoan and Muawin are also guilty of the same practices. These apps have over a million downloads altogether.
Not Surprising
It’s not surprising if you’ve been keeping up with the situation. These apps have faced previous issues related to data collection. Whether they use this data for their benefit or sell it to others remains uncertain.
On a positive note, the SECP has warned registered apps like Barwaqt to address their predatory practices within a week, or they could be shut down.
Significant strict restrictions are imposed on Loan Apps Debt recovery methods. Those not following will be shut down.
Along with that apps like Barwaqt that are registered with SECP have been given warning notice to change all predatory practices within a week or face closure. pic.twitter.com/FK9ZBQD6S3
— Salman Sufi (@SalmanSufi7) July 22, 2023
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