Home Ministry Asks States To Take Action Against Predatory Lending Apps
NDTV
In a communication to all states and Union territories, the Home Ministry said the issue has caused a serious impact on national security, economy and citizen safety.
The Union Home Ministry has sought urgent strict action by law enforcement agencies against predatory lending apps as harassment, blackmail and harsh recovery practices by such Chinese-controlled entities have led to multiple incidents of suicides.
In a communication to all states and Union territories, the Home Ministry said the issue has caused a serious impact on national security, economy and citizen safety.
It said a large number of complaints have been reported across India related to illegal digital lending apps that provide short-term loans or micro-credits at exorbitant interest rates with processing or hidden charges, especially to vulnerable and low-income group people.
The lenders use the borrowers' confidential personal data like contacts, location, photos and videos for blackmail and harassment.
