illegal digital lending apps Flashcards
Background?
The advisory comes in the backdrop of at least three borrowers in Telangana committing suicide in the recent past, following alleged harassment by personnel of such lenders, and many more complaining of being subjected to coercive methods after defaulting on repayments.
RBI Says?
Public should be wary of unauthorised digital lending platforms and mobile apps.
Public should verify antecedents of the company/ firm offering loans online or through mobile apps.
Consumers should never share copies of KYC documents with unidentified persons or unverified/unauthorised apps.
[DONT SHARE COPY OF KYC DOCUMENTS]
They can report such apps/bank account information associated with the apps to law enforcement agencies concerned or use sachet portal (https://sachet.rbi.org.in) to file complaint.
issues wrt digital lending apps?
They attract borrowers with promise of loans in a quick and hassle-free manner.
But, Excessive rates of interest and additional hidden charges are demanded from borrowers.
[EXCESSIVE INTERESTS ; ADDITIONAL HIDDEN CHARGES]
Such platforms adopt unacceptable and high-handed recovery methods.
[USE UNACCEPTABLE RECOVERY METHODS]
They misuse agreements to access data on the mobile phones of the borrowers.
