Some Loan Apps Are Vacuuming Your Data. Google Is Cracking Down

In today's digital landscape, many of us rely on loan apps to meet our financial needs. However, recent reports suggest that some loan apps might be taking advantage of their users by exploiting their personal data. This has caught the attention of tech giant Google, who is now cracking down on these insidious applications. Here is how loan apps are vacuuming your data, and why Google is cracking down on them.

Harassment from debt collectors

Not all loan apps are created equal. While some are trustworthy and have legitimate reasons for requesting access to your data, which includes your contacts and photos, others are using it for malicious purposes. While this might seem harmless at first, some loan apps are using this information to harass their users when they fail to repay their loans.

Debt collectors in India and Kenya have accessed the borrowers personal contacts to also harass friends and family members of borrowers. In some cases, they have even manipulated photos to further intimidate those in debt. Not only is this a privacy issue, but it has also become a matter of safety. Some victims of loan app harassment have reportedly committed suicide due to the stress and shame caused by debt collectors.

Google to prohibit loan apps from accessing personal data

In light of this issue, the tech giant initially responded by blocking hundreds, and eventually thousands, of these apps from its Play Store. Additionally, Google implemented strict rules to prohibit unlicensed loan apps from being available on its Android app store. To further prioritize the safety and security of its users, Google has announced new guidelines that restrict personal loan apps from accessing sensitive user data. Specifically, starting May 31, 2023, Google will prohibit these apps from accessing user photos, contacts, and other sensitive information.

"Apps that provide personal loans, or have the primary purpose of facilitating access to personal loans (i.e., lead generators or facilitators), are prohibited from accessing sensitive data, such as photos and contacts," the company stated in an update to its Personal Loans policy. The following permissions will be prohibited:

• External storage
• Images
• Contacts
• Location
• Phone numbers
• Videos

While facing criticism in the past for not taking stronger measures, the Android maker has implemented policy updates across several global markets, including India, Indonesia, Nigeria, Kenya, and the Philippines. Loan apps can be a useful tool for managing your finances, but it's important to be aware of the risks involved. By doing your research, making sure you're using a reputable app, and taking steps to protect your personal data, you can stay one step ahead of potential threats. With Google's move, other companies may also follow suit, hopefully creating a safer and more secure platform for both borrowers and lenders.