Loan apps in Pakistan have recently been in hot water, with the FIA and others launching large-scale crackdowns, resulting in many office closures and app removals from the Google Play Store.
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In collaboration with the Securities and Exchange Commission of Pakistan (SECP), Google has also implemented stricter policies against these apps.
If you’ve been following these apps, you’d know that the suspicion is not unfounded. After all, they do collect a dubious amount of data. Here are the specifics.
- Excessive Permissions
Popular loan apps, even those registered with the SECP, require an unusually large number of permissions, even for simple tasks. For example, Barwaqt requires access to your phone’s gallery, contacts, app activity, and personal information.
The image below is from the Google Play Store page for Barwaqt.
Other popular apps, such as JazzCash and Easypaisa, do not list their list of required permissions on the app store, but you can see the full list once you download their apps to your phone. Examine it out.
As you can see, these apps require a lot of information from you as well. Granted, you can always disable any of this data collection on modern versions of Android, but their existence is highly dubious in the first place. Keep in mind that these apps have received over 70 million downloads on Android.
Other SECP-registered apps, such as EasyLoan and Muawin, are engaging in the same practices. These apps have received over a million downloads in total.
- It’s not surprising
If you’ve been following the story, none of this should come as a surprise. These apps have previously gotten into trouble for all of this data collection. We can only speculate on whether all of this data is used for their own benefit or sold to third parties.
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 (Get New Covid Booster Today) (@SalmanSufi7) July 22, 2023
On the plus side, SECP did announce that it had issued a warning to all of its registered apps, including Barwaqt, to fix their predatory practices or face closure within a week.
To read our blog on “43 illicit Loan Apps restricted as Govt. steps up regulation,” click here
