Google to Ban Digital Lending Apps from Accessing User Data

Google has said to ban digital lending apps from accessing user data in efforts to combat the spread of predatory lending practices from some lenders that harass borrowers.

Google wants to restrict apps that offer loans to individuals from accessing private user information like images, videos, and contacts.

The modifications followed a series of interactions between lenders, regulators, and borrowers in the Kenyan loan app market intended to address the industry’s predatory lending practices.

A new set of restrictions that bar apps from accessing external storage, photographs, videos, contacts, the precise location, and call data were added to the search engine giant’s Personal Loans policy for Play Store apps on Wednesday, effective May 31.

“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,” the company said in its update.

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In the past four years, a worrying trend has emerged where certain borrowers of loans using mobile apps have experienced harassment from debt collectors.

It is claimed that these debt collectors obtained access to the borrowers’ personal contacts and informed family members of overdue debts.

In more severe cases, agents have altered images to further terrorize and frighten debtors. Tragically, some of the people who were targeted caved into pressure and killed themselves.

Such events received a lot of coverage in countries like Kenya, Nigeria, the Philippines, and India.