Google to prohibit personal loan apps from accessing user photos, contacts

In the latest update to its Play Store policy, Google is set to restrict apps that offer loans to individuals from accessing user data such as photos, videos, contacts, precise location and call logs.

The new restrictions will apply to all apps on the Play Store that offer personal loans or facilitate access to personal loans. The change will come into effect from May 31.

“We’re updating our Personal Loans policy to state that apps aiming to provide or facilitate personal loans may not access user contacts or photos,” the company said in its update.

“We don’t allow apps that expose users to deceptive or harmful financial products and services. If your app contains or promotes financial products and services, you must comply with state and local regulations for any region or country that your app targets — for example, include specific disclosures required by local law,” it said.

Borrowers being harassed

The move by the tech giant comes after several cases emerged in recent months in which borrowers faced harassment after taking instant loans through these apps.

These apps offer easy credit access to those in need of urgent money but the borrowers face harassment by recovery agents if repayment is delayed.

The apps often have access to information, including call logs, contacts saved on borrowers’ devices, etc. In some instances, contacts have been called to shame the borrower into paying up.

Long overdue

Google has faced criticism in the past for not taking strong measures against instant loan apps.

Last year, the tech giant was asked by the government and RBI to introduce more stringent checks to help curb the use of illegal digital lending applications, according to a Reuters report.

In its response, Google said it had revised its Play Store developer program policy for financial services apps, including instituting additional requirements for personal loan apps in India effective September 2021.

“We have removed over 2,000 personal loan apps targeting India from the Play Store for violation of the Play policy requirements,” the report quoted a Google spokesperson as saying.

In January, the government informed Parliament that the RBI had issued advisories to state governments to keep a check on “unauthorised digital lending platforms and mobile apps through their respective law enforcement agencies”.

In February, the Central government issued orders to block 138 betting and gambling apps and 94 quick loan-providing apps on an “urgent” and “emergency” basis for indulging in “improper data storage and transfer” to other countries as well as money laundering activities.