THE Securities and Exchange Commission of Pakistan (SECP) deserves appreciation for moving swiftly to protect innocent people from falling into the trap of illegal loan apps. It succeeded in removing over 120 illegal loan apps that were previously available on Google Play and Apples stores. The measures was taken by the Commission in collaboration with Google, Apple and the Pakistan Telecommunication Authority (PTA), in view of the recent proliferation of illegal personal loan apps, raising concerns of misuse, data privacy violations and coercive recovery practices.
It is a matter of satisfaction that apart from removal of such apps from relevant stores, the SECP has strengthened its regulatory framework for licensed Non-Banking Finance Companies (NBFCs) in a bid to safeguard interests of the people. Through vigilant surveillance and complaints received via the SECP’s dedicated complaint site, the regulator identified 120 unlawfully operating personal loan apps. It promptly reported these apps to Google, Apple and the PTA for blocking, and also referred them to the FIA for further action in accordance with the Prevention of Electronic Crimes Act of 2016. The hard work and success of the efforts of the SECP can be gauged by the fact that Google has introduced Pakistan’s Personal Loan App Policy, according to which Google only allows SECP-approved Personal Loan Apps to be listed on its Google Play Store. However, to make the campaign more effective, it is the responsibility of the people as well to report any illegal loan app or illegal investment scheme to the notice of the Commission and other relevant agencies like PTA and FIA which also has a cyber wing. We also hope that similar vigilance would also be demonstrated by all civic bodies across the country to save the people against illegal housing schemes besides a strong action by the HEC and provincial governments against dubious educational institutions.
