Beginning on May 31st, Google will apply a new policy for loan apps offering personal loans that may assist shield customers from abuse and harassment. The software giant has amended its policy to forbid applications for payday loans from having access to users’ contacts lists (per TechCrunch). People’s images and movies, whether they are stored on the phone itself or an external storage device, will also no longer be accessible to them.
In response to numerous complaints of harassment from places like India, Pakistan, Kenya, and the Philippines, Google has made a number of improvements over the past year, of which this is just one. Before they lend money, access to users’ phonebooks and contact lists is frequently needed by loan apps.
These apps appear to be a rather practical answer for unforeseen financial troubles given how simple it is for users to install them on their phones. Nevertheless, because they sometimes demand excessive interest rates, many borrowers wind up unable to make payments. The abuse starts at that point.
In an effort to shame the borrower into paying, agents for these firms would bulk send vulgar texts to all of the borrower’s contacts, including chance acquaintances and coworkers. Some would even go so far as to make physical harm threats to them and their family. According to a previous post by TechCrunch, several victims of abuse committed suicide as a result of the assault, which became so severe.
Google enacted regulations for India, Indonesia, the Philippines, Nigeria, Kenya, and Pakistan, requiring them to present evidence of authorization and other documentation from the relevant governmental bodies in an effort to keep these loan sharks under check. Google already prohibited payday lending applications in the US in 2019 if they had an APR of 36% or above. A single loan app can only be published on the Play Store in Pakistan starting on May 31st due to restrictions imposed by non-banking financial organizations.
This looks like a positive start for Google to prevent these applications from accessing people’s phonebooks.