Google to Restrict Loan Apps from Accessing User Photos, Contacts

Google has announced that it will restrict personal loan apps from accessing sensitive user data, including photos and contacts.

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Policy Update

The company has updated its Personal Loans policy, stating that apps that aim to provide or facilitate personal loans will no longer be permitted to access these types of data.

This move is part of Google's efforts to protect users from deceptive or harmful financial products and services.

Personal loan apps in Pakistan will also be subject to additional requirements. They must submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.

This is aimed at ensuring that only licensed and reputable lenders are able to offer personal loans to users in Pakistan.

Apps that promote personal loans that require repayment in full in 60 days or less from the date the loan is issued are not allowed. Google also does not allow personal loan apps in the United States, where the Annual Percentage Rate (APR) is 36% or higher.

These apps must consistently display their maximum APR calculated with the Truth in Lending Act (TILA).

"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 wrote in its update.

Google Bans Loan Apps

In related news, Google has banned hundreds of loan-related apps from its Play Store in Kenya following the implementation of its new policy in January.

After Kenya's Digital Credit Providers (DCP) regulations took effect in 2022, the policy requires digital lenders in the East African nation to provide proof of licensure.

According to these rules, organizations that offer loans online must obtain licenses from the Central Bank of Kenya.

In a recent spot check, TechCrunch discovered that roughly 500 apps that had previously been featured in the Play Store's finance category had been removed.

There were 657 apps in the financial category at the beginning of February, including apps for loans, banking, and investment. Only 198 apps are accessible in the category as of writing.

Nevertheless, according to the Central Bank of Kenya, 22 of the 381 digital lenders that filed for licenses had received them as of January.

They included the PayPal-backed loan app Tala, the B2B embedded lending platform Pezesha, and the fintech provider Jumo.