ISLAMABAD
\nTop regulator of telecom sector in the country Pakistan Telecommunication Authority (PTA) has blocked 43 digital lending apps which were operating without a proper licence.
\nThe apps were criticised for their predatory lending tactics after a man committed suicide for failing to repay debt which had swelled to Rs800,000.
\nIt has been disclosed that action has been taken in response to Federal Minister for Information Technology and Telecommunication (MoITT) Syed Aminul Haque directives to PTA Chairman retired Maj Gen Hafeezur Rehman to act against illegal loan apps.
\nHaque said \u2018strict action\u2019 had been taken against those apps which were \u2018blackmailing the masses\u2019. The minister emphasised the importance of launching an awareness campaign to prevent people from falling victim to such fraudulent activities.
\nThe statement further said individuals should report complaints to relevant authorities such as the PTA, the FIA Cyber Crime and local police to take appropriate action against these illegal loan apps.
\nAs per MoITT, the IT minister also made contact with the FIA with directions to take action against such elements instead of waiting for complaints.
\nThe subject of digital lending apps falls under the jurisdiction of the Securities and Exchange Commission of Pakistan (SECP) which registers them, whereas blocking them is the purview of the State Bank and the PTA.
\n\u201cThe SECP has been able to block 86 illegal apps in a year with the help of Google as they are downloaded from the PlayStore,\u201d a senior SECP official has been reported saying these apps restart their business with a new name soon after being banished.
\nThese apps also carry out extensive advertising on social media and digital platforms, allowing them to lure more unsuspecting customers.
\nThe Federal Investigation Agency (FIA) is investigating all legal and illegal loan apps in the wake of Mahmood Masood\u2019s death. A senior FIA official told the media that the deceased had not only taken loans from lending apps but also from relatives and friends.
\nMeanwhile, the FIA, during its crackdown across the country on illegal loaning companies, has registered 74 cases for inquiries on the complaints lodged by the affectees and registered three FIRs against the individuals and companies. The FIA arrested 17 suspects running illegal online loan schemes from various cities and blocked 30 accounts.
\nFIA Director General Mohsin Hassan Butt directed all field units of the cyber crime wing to take strict action against the companies and individuals offering loans through unregistered and illegal mobile applications.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Top regulator of telecom sector in the country Pakistan Telecommunication Authority (PTA) has blocked 43 digital lending apps which were operating without a proper licence. The apps were criticised for their predatory lending tactics after a man committed suicide for failing to repay debt which had swelled to Rs800,000. It has been disclosed that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-344008","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n