The Pakistan Telecommunication Authority (PTA) has blocked 43 online loan apps, the Ministry of Information Technology and Telecommunications (MoITT) has announced.
The development arrives just days after a man died by suicide in Rawalpindi due to threats from a lending app over his failure to repay the loan.
Strict action has been initiated against illegal digital loan applications, according to a statement by the IT ministry. On IT Minister Syed Aminul Haque’s directives, the telecom has blocked 43 loan apps that were operating without a licence.
قرضہ ایپلی کیشن اسکینڈل/امین الحق کااہم اقدام
"غیر قانونی قرضہ ایپلی کیشن کےخلاف سخت کارروائی کا آغاز کردیا گیا ہے.چیئرمین پی ٹی اے میجرجنرل حفیظ الرحمان کو ایسی ایپلی کیشنز کےخلاف فوری کارروائی کی ہدایت کی گئی.ہدایات پر فوری عملدرآمد کے تحت43 ایپلی کیشنز کو بلاک کردیا گیا ہے. pic.twitter.com/4Gef33wT7Q
— Ministry of IT & Telecom (@MoitOfficial) July 17, 2023
The statement stresses the need for awareness campaigns to educate people and prevent them from being blackmailed by predatory lenders. Complaints regarding loan applications can be registered with the PTA, the Federal investigation Agency’s Cybercrime Wing, or local police, the ministry says.
The ministry has also warned users not to be influenced by advertisements for such apps and share their personal data with online lenders.
The FIA, on the other hand, launched a number of operations against illegal loan companies following the incident. The authority arrested 17 suspects and blocked 30 accounts in various cities.
Of late, there has been a surge in advertisements for personal loan apps on the internet, leading to a rise in fraud and blackmail. Advertised as “convenient” and “safe”, loans granted by a number of these apps often come with heavy interest rates and exploitative conditions.
In April, Google updated its policy concerning online loan apps operating in Pakistan. The search engine giant introduced stricter guidelines for digital lenders, including barring them from accessing borrowers’ personal data such as photos and contacts.
Google remarked it would not allow apps that expose users to deceptive or harmful financial products and services.
Online finance apps are registered with the Securities and Exchange Commission of Pakistan (SECP). It is, therefore, advisable to check whether the company holds a valid licence on the SECP website.
