SECP Shut Down Illegal Apps
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SECP shut down 120 illegal personal loan apps

SECP shut down 120 illegal personal loan apps

Securities and Exchange Commission of Pakistan (SECP) with the support of Google and Pakistan Telecommunication Authority in cooperation with Google and Apple Play Store in view of consumer protection. 120 available illegal loan apps have been closed. Recently, the trend of illegal personal loan apps has come to the fore with serious complaints about data privacy violations and inappropriate collection procedures, providing misleading information to users.
SECP has not only tightened its regulatory framework for licensed non-banking finance companies (NBFCs) but has also taken effective measures to shut down unauthorized and illegal loan applications.

As a result of effective monitoring by SECP and complaints received from users, SECP has directed Google and PTA to immediately block 120 personal loan apps operating illegally. Reported.

Apart from this, FIA has been referred for further action under the Prevention of Electronic Crimes Act, 2016 against those running these illegal apps. SECP also continuously monitors the Google Play Store and Apple App Store for the presence of illegal apps. As a result of SECP’s continuous efforts, Google has introduced a new personal loan app policy for Pakistan. According to Google only places personal loan apps approved by SECP on its Google Play Store.

Customers availing loans from digital apps are advised to avail loans only from approved apps of licensed non-banking finance companies. Under SECP’s regulatory framework, approved apps must provide the user with clear information on loan charges, loan tenure, installments and other charges.

Additionally, SECP has mandated that loans be provided through digital means. It has also started auditing the implementation of regulatory framework and other standards by the licensed non-banking finance companies to assess possible data privacy violations etc. in these companies as well.

The NBFCs under review provide 95 percent of total digital loans. Public is informed that in case of any complaint against licensed NBFCs and approved loan apps, complaints can be filed on SECP’s complaint portal https://sdms.secp.gov.pk/sdmsadmn/ do it Also, illegal investment schemes or illegal loan applications can also be reported on this portal.

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