The recent update to Google’s policy will now restrict loan apps from accessing users’ contacts list and media files, including photos and videos. This move is aimed at preventing abuse and harassment by loan apps, particularly in markets where such issues have been reported, such as India, Pakistan, Kenya, and the Philippines.
Loan apps have been known to require access to users’ phonebooks and media files as a condition for lending money. However, the high interest rates charged by these apps often result in borrowers struggling to make payments, leading to harassment from agents who would send profanity-laden texts to borrowers’ contacts in an attempt to shame or threaten them into paying.
Google has been taking steps to address this issue by implementing stricter rules for loan apps in certain countries, including requiring them to submit proof of approval from government agencies. In the US, payday loan apps with high interest rates were banned in 2019, and in Pakistan, non-banking financial institutions will be limited to publishing only one lending app on the Play Store starting May 31st.
The updated policy will help protect users’ privacy and prevent potential abuse and harassment from loan apps. Google continues to work towards creating a safer and more user-friendly environment on its app store, prioritizing the well-being and security of its users.
