Loan apps are scamming Indians by hiding the ugly details in terms and conditions, misusing data
There are several such platforms that have come up promising good returns, before revealing the bad conditions applied and then turning ugly with abuses and threats.
Manas Tiwari | December 24, 2020 | Updated 11:54 IST
Several money lending apps lure borrowers by offering instant loans.
Highlights
They charge significantly higher interest rate.
Users are threatened over calls.
Mr X lost his job in May in the aftermath of COVID-19. He had few expenses to take care of children s school fee, car EMI, house EMI, medical needs of parents. For few weeks, he survived on savings. Then, he got to know about a money lending app that gives instant loan and reasonable time to return that. Going through a difficult phase in life, Mr X took a loan of Rs 30,000, hoping to find a new job and return the sum.
Updated Dec 24, 2020 · 06:26 pm Representative Image | AFP
The Hyderabad and the Cyberabad police have arrested 17 people in connection with an app-based instant microloan lending scam,
The Hindu reported on Wednesday. The police arrested 11 people from Delhi and Gurugram, six others from Hyderabad, and also registered 23 cases against the instant loan companies.
The scam came to light after three people killed themselves in the past few weeks following alleged harassment from the debt collectors of these companies. The Hyderabad police then conducted raids in Hyderabad and Gurugram and arrested the officials of Liofang Technologies Private Limited, Hotful Technologies Private Limited, Pinprint Technologies and Nabloom Technologies Private Limited. All these companies are registered in Bengaluru.
Crackdown on illegal instant loan apps; 17 arrested from Delhi, Gurgaon, Hyderabad
Based on complaints, the Hyderabad and Cyberabad police have registered 16 and 7 cases, respectively, against such companies. December 23, 2020 10:30:06 am
The Cyberabad police registered a case under sections 420 (cheating), 506 (criminal intimidation) of IPC and also invoked section 66 of the IT Act, section 3, 10, and 13(1) of the Telangana Money Lenders Act and started an investigation.
Cracking down on illegal app-based instant microloan lending companies, Hyderabad police arrested 11 persons from Delhi, Gurgaon and the Cyberabad police arrested six others here. Based on complaints, the Hyderabad and Cyberabad police have registered 16 and 7 cases, respectively, against such companies.
Cops probe app-based instant loan providers, NBFCs
December 22, 2020
Google, NBFCs served notice; complaints of harassment pour in from borrowers With reports of app-based personal loan disbursal firms harassing customers coming in from different parts of the country, the Cyberabad Police has cracked down on two companies, held six persons and served notices on Google and nine NBFCs.
The Telangana police has deputed special teams to Bengaluru and Delhi as part of the investigation into the fraud. As many as 70,000 people have reportedly took loans from the apps, which are charging interest rates of up to 35 per cent.
The cops have put the Reserve Bank of India (RBI) on alert on the very high interest rates being charged by the apps and dubious methods that they followed for recovery.