Apple has taken action against a number of lending apps in India by removing them from the App Store. This decision came after reports emerged revealing that these apps were engaging in harassing behavior towards borrowers. TechCrunch reported that hundreds of reviewers complained about the apps, alleging that they offered fast loans but imposed exorbitant charges on borrowers.
Among the apps that Apple removed were Golden Kash, OK Rupee, White Kash, and Pocket Kash. Numerous customers claimed that these lenders resorted to blackmail tactics in order to intimidate borrowers into repaying their loans.
One user review recounted a situation where they had borrowed money in an emergency, only to receive a threatening message a day before the repayment was due. The message included personal contacts and a picture, with the implication that failure to repay the loan would result in the borrower’s contacts being informed.
These apps, which had developers with suspicious names and questionable websites, were flooded with similar negative reviews, with some users reporting even more alarming threats from the lenders.
Apple stated that it removed these apps due to violations of the Apple Developer Program License Agreement and guidelines. The company clarified that these apps were falsely claiming to be associated with financial institutions.
In recent times, the App Store has prevented over $2 billion in fraudulent transactions and rejected around 1.7 million app submissions for failing to meet the company’s quality and safety standards. Additionally, it has terminated 428,000 developer accounts due to potential fraudulent activity.
The rise of predatory loan apps has been linked to the surge in the fintech sector in India. Certain digital platforms have exploited regulatory loopholes, offering unsecured loans with extremely high interest rates in a matter of minutes. The situation has been exacerbated by the financial insecurities caused by the COVID-19 pandemic, which resulted in widespread job losses and reduced incomes. According to TechCrunch, Google’s Android mobile operating system has been the primary platform for these predatory lending apps in India. Both Google and the Reserve Bank of India have taken steps to address this issue.
