CCP takes notice of fraud through small loans mobile apps 

Competition Commission of Pakistan (CCP) Thursday took notice of fraud in small loans given to consumers by mobile applications on Google Play Store and started investigations against it, reported 24NewsHD TV channel.

The commission stated that the mobile applications are illegally offering consumers small loans most of which belong to the lower or middle socioeconomic classes. The initial investigations showed that these apps, contrary to their advertisement receive processing fees and interest rates.

Some incidents have surfaced in which false claims of security and data policy were made and then breached as inconsistencies were found in gathering the user’s personal and private data, credit limits and receiving payments.

The CCP’s inquiry committee was given the authority to conduct a thorough inquiry into this matter. It was also directed to submit an inquiry report on the alleged violation of the Competition Act against these mobile applications. Meetings with the Securities Exchange Commission of Pakistan, the Pakistan Telecommunication Authority and the Federal Investigation Agency were also held in this regard.

The commission stated that finding the owners of these applications is a big hurdle as most of the applications contain the false and misleading addresses and contact information.

The initial investigations stated that these apps have been downloaded by more than 10 million users.