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The federal government has restricted digital money lenders from accessing the contact list and pictures of their customers.
It noted that it would also enforce the latest policy by Google Play store, adding that the action was consistent with its move to curtail the invasion of customers’ privacy by loan app firms.
The federal government, in recent time, has taken major decisions aimed at tackling the violation of customers’ privacy by loan apps.
Notably, the Federal Competition and Consumer Protection Commission (FCCPC) recently registered 173 loan apps out of the 200 operating in the country.
119 of these digital money lenders got full approvals while 54 got conditional approvals.
This move became necessary after loan apps started harassing Nigerians by sending defaming messages to their contacts, and more.
Google, in its April 2023 policy updates, said that the new policy update would provide respite for loan app users in Nigeria and other places that have become accustomed to crude loan retrieval methods employed by a majority of loan apps.
Google said thst, “Policy preview (effective May 31, 2023): This article previews changes included in our April 2023 policy updates.
“We are updating our personal loans policy to state that apps aiming to provide or facilitate personal loans may not access user contacts or photos.
“We are introducing additional requirements for personal loan apps targeting users in Pakistan.
“Personal loan apps in Pakistan must submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.”
This new policy is coming after the firm announced updates to its developer programme policy, mandating digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya to conform to regulatory rules or be taken down by January 31.
According to the firm, only digital money lenders that have adhered to and completed the limited interim regulatory/registration framework and guidelines for digital lending, 2022 (as may be amended from time to time) by the FCCPC will be allowed on Play Store in Nigeria.
The managing director of FCCPC, Babatunde Irukera, while commenting on the new policy on Sunday evening, April 9, stated that it was a welcome development and shows that Google was institutionalizing its regulatory policy.
He said that, “It is a welcome development and is consistent with the position the FCCPC has been enforcing.
“Google is now institutionalizing our regulatory effort as a policy, which is very welcome.
“It is certainly important for proper regulatory oversight of the industry, and we commend Google for taking a position that is consistent with our position as regulators,” Irukera added.
Source: TheStreetJournal | Read More
