Loan Apps To Lose Access To Users’ Privacy
Loan apps on Google Play Store will lose access to users’ contacts or photos from May 31, 2023.
The move is in line with recent efforts by the Nigerian government to tackle privacy violations by loan app firms.
The Federal Competition and Consumer Protection Commission has recently registered 170 loan apps from the 200 operating in the country.
Meanwhile, Google’s new personal loan policy will prevent apps from accessing user contacts or photos.
While requirements for personal loan apps targeting users in Nigeria will be strengthened with additional licensing documentation.
That is, Digital money lenders in NIGERIA, India, Indonesia, the Philippines, and Kenya will be taken down by January 31.
That’s if they do not adhere to regulations.
Digital lenders must complete the Limited Interim Regulatory Guidelines for Digital Lending laid down by the FCCPC.
And obtain approval to be allowed on Play Store in Nigeria.
This move became important after loan apps began harassing Nigerians by sending defaming messages to their contacts.
The commission’s guidelines seek to regulate digital lending and make registration and approval a prerequisite for operators in the field.
Google said, “Policy preview (effective May 31, 2023): This article previews changes included in our April 2023 policy updates.
“We are updating our personal loans policy.
To state that app aiming to provide or facilitate personal loans may not access user contacts or photos.
This new policy is coming after the firm announced updates to its Developer Programme Policy, on digital money lenders.
NIGERIA, India, Indonesia, the Philippines, and Kenya are to conform to regulatory rules or be taken down by January 31.
Digital money lenders that have adhered to and completed the Limited Interim Regulatory/Registration Framework Guidelines for Digital Lending 2022 may be amended from time to time.
However, Consumer Protection Commission that obtains a verifiable approval letter from the FCCPC will be allowed on Play Store in Nigeria.
The C.E.O of FCCPC, Babatunde Irukera, stated that it was welcome development and that Google was institutionalising its regulatory policy.
He said, “It is a welcome development effort and is consistent with the position the FCCPC.
“Google is now institutionalising our regulatory effort as a policy, which is very welcome.
It is certainly important for proper regulatory oversight of the industry.
And we commend Google for taking a position that is consistent with our position as regulators.”
He added, “Recall that we took this position earlier and what has happened is that Google has looked at it.
“Regulatory landscape looked at the regulatory priorities and is supporting those priorities by institutionalizing those regulatory priorities and positions. ”
