A couple from Rajahmundry of Andhra Pradesh died by suicide on Wednesday, September 7, allegedly due to harassment from recovery agents of a loan app. Durga Rao and his wife Ramya Lakshmi had reportedly borrowed around Rs 30,000 from loan apps, and were allegedly being harassed by recovery agents with threats to share morphed videos and photos made to look like nude visuals of Ramya. A relative of the couple said that they had paid a few installments of around Rs 2,000, but they continued to face threats, where their morphed visuals were shared with their relatives and acquaintances. The couple is survived by two daughters, aged four and two years.
This is a common modus operandi of loan apps that have sprouted across the country, and grew popular during the COVID-19 pandemic. These loan apps, most of them Chinese-owned, offer loans ranging from Rs 2,000 to Rs 20,000, at humongous interest rates, but without requiring extensive verification. However, to avail these loans, users need to agree to share their personal data on their phones, like access to contacts and their image gallery, before the money can be transferred. Later, in case the user defaults on the payment of the loan, or there is a delayed payment, recovery methods often include contacting people on the contact list of the victim and informing them about the loan, morphing victims’ images as nude photos etc.
According to reports, Durga Rao, who hails from Labbarthi village (which now falls under the Alluri Sitharama Raju district) moved to Rajahmundry around ten years ago and married Ramya around six years ago. Durga Rao did painting works for a living and Ramya did tailoring work. Police said that they had borrowed around Rs 30,000 and had repaid the amount partially, according to The New Indian Express. Chief Minister YS Jagan Mohan Reddy has directed officials to take action against loan apps operating in violation of Reserve Bank of India (RBI) norms.
Andhra Pradesh Women’s Commission Chairperson Vasireddy Padma, YSRCP MP Margani Bharat, and East Godavari district Collector K Madhavi Latha visited the children of the deceased couple and handed over a cheque of Rs 10 lakh to their guardians. Vasireddy Padma instructed the Women Development and Child Welfare Department to make arrangements to take care of the children. Speaking to the media, she advised people facing harassment due to loan apps to use mechanisms like the Disha app to seek help. “People must not take their lives in haste due to shame. The government along with the Women's Commission will support such people in all ways,” she said.