Technology behemoth Apple has removed several lending apps from the App Store in India after reports of them harassing the borrowers came into light. Hundreds of reviewers claimed that these apps offered fast-track loans to the consumers but levied exorbitant charges, TechCrunch reported.
The dubious apps removed by Apple include Golden Kash, OK Rupee, White Kash and Pocket Kash. According to several customers, the lenders often employed blackmailing tactics to intimidate borrowers into repaying the amount.
A review posted on the app was of a user who borrowed an amount in an emergency situation. However, the user received a message a day before repayment with the contacts and picture threatening to inform his/her contacts about not paying the loan.
The apps whose developers had strange names and dubious websites, were swamped with similar reviews, some of them sharing even more alarming threats they reportedly received from lenders.
Apple told the website it had removed the apps for violating the Apple Developer Program License Agreement, and guidelines. The iPhone maker said such apps were falsely representing an association with a financial institution.
Recently, the App Store had stopped more than $2 billion in fraudulent transaction last year and rejected nearly 17 lakh app submissions for having failed in meeting the company's standards of quality and safety. It also terminated 4.28 lakh developer accounts for potential fraudulent activity.
Fintech sector surge linked to rise of predatory apps
{{/usCountry}}Recently, the App Store had stopped more than $2 billion in fraudulent transaction last year and rejected nearly 17 lakh app submissions for having failed in meeting the company's standards of quality and safety. It also terminated 4.28 lakh developer accounts for potential fraudulent activity.
Fintech sector surge linked to rise of predatory apps
{{/usCountry}}The rising fintech sector in India has also witnessed the rise of such predatory loan apps. Some digital platforms have been found to exploit regulatory loopholes and offer almost instantaneous but unsecured loans with interest rates which are extremely high.
The situation has worsened with the Covid-19 pandemic, which deepened financial insecurities due to massive job losses and reduced incomes. The TechCrunch report claimed that Google's Android mobile operating system has been the primary platform for predatory lending apps in India. Both Google and the Reserve Bank of India have intervened to rectify the situation.