The Kerala government has mooted to formulate a law to rein in loan apps after irregularities associated with such apps came to its notice. Industries Minister EP Jayarajan, on Tuesday, said that at least 63 cases have been registered in the state. The police have informed that there are at least 400 such apps, which function from outside the state, Minister Jayarajan said in the Assembly to a calling attention motion by Congress MLA K Sabarinath.
Jayarajan, speaking for Chief Minister Pinarayi Vijayan, said 63 cases have been registered and the Crime Branch was investigating two cases. Earlier, Kerala police chief Lokanath Behera had ordered the Crime Branch to investigate the online loan apps fraud reported from some parts of the state recently. The government was mulling over bringing in a law as early as possible to rein in the loan apps, the Minister said.
Sabarinath wanted the state government to enact comprehensive legislation taking into account the social issues created among the youth of the state due to lending apps.
In a series, TNM explained how the mobile applications collect personal data of users, to use it to manipulate and harass users imbibing predatory methods to collect high-interest rates. Scores of people have fallen prey to such apps in the country.
One of the reasons such apps are very popular among people is that such apps provide loans without requiring creditworthiness of users or do not ask for a loan agreement. However, the companies provide loans at a very high-interest rate. There have also been reported instances of apps selling the data of users, where users are threatened and even women are harassed with their images morphed with pornographic material.
With PTI Inputs