A bunch of apps available on Google Play facilitate personal loans for individuals but some apps have been taking advantage of the situation and have been harassing users over the repayment of the lent amount. Now, Google is taking charge of the situation and says that such loan lending apps will be blocked from accessing the personal data on the user’s Android devices.
Google is updating its policy on personal loan apps on Android, banning the apps from accessing personal data on your phone, including the photos on your smartphone and your contacts list as well.
In an updated page on its policy center, Google says, “Apps that provide personal loans, or have the primary purpose of facilitating access to personal loans (i.e., lead generators or facilitators), are prohibited from accessing sensitive data, such as photos and contacts”.
Google further notes that the change will come into effect beginning May 31. The change is likely due to an emerging trend debt collectors who have been using such apps have allegedly accessed the user’s contacts from their phone through the App to contact friends and family of the user regarding the outstanding debts.
This practice is apparently common in India and Kenya, as per a TechCrunch report. Google responded to alerts regarding such instances from law enforcement agencies and central banks by blocking thousands of personal loan apps from the Play Store.
Due to other similar instances, the Indian government, back in February, took action against a bunch of loan-lending and betting apps with Chinese links and banned them in the country. This is because several reports of extortion and harassment had been emerging from people who had taken out small loans through these apps.