FG stops loan apps from accessing customer’s contacts, photos

The Federal Government (FG) has placed a ban on loan apps from accessing users’ contacts or pictures.

The FG said the ban on the apps on the Play Store will take effect on May 31, 2023.

The Federal Competition and Consumer Protection Commission (FCCPC) recently approved 173 loan apps out of the 200 operating in Nigeria.

Google, in its April 2023 policy updates, stated that the new policy would provide respite for loan app users in Nigeria and other places where crude loan retrieval methods have become commonplace.

READ ALSO: FG approves 173 loan apps, bars illegal digital banks

The updated policy prohibits personal loan apps from accessing user contacts or photos.

The policy also introduces additional requirements for personal loan apps targeting users in Pakistan, including the submission of country-specific licensing documentation to prove their ability to provide or facilitate personal loans.

The new policy follows Google’s recent announcement of updates to its Developer Programme Policy. This update mandates digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya to conform to regulatory rules or face removal from the Play Store by January 31.

Digital money lenders in Nigeria must adhere to and complete the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, and obtain a verifiable approval letter from the Federal Competition and Consumer Protection Commission to be allowed on the Play Store in Nigeria.

The Star