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The government’s Ministry of IT and Telecom finally decided to take action against illicit lending applications after receiving multiple reports, indicating exactly how pervasive the problem had become, and banned over 40 of them.
As per a statement released by the IT and Telecom ministry on Monday, Federal Minister Aminul Haq also directed Pakistan Telecommunication Authority (PTA) Chairman Major General Hafeez-ur Rehman to take immediate action.
“43 applications have been blocked under the immediate implementation of the instructions,” read the statement, as PTA also seeks consultation and support from the Securities and Exchange Commission (SECP).
The ministry said that some companies are registered with the SECP.
While the apps give the mostly unbanked access to rapid, collateral-free lending, the development has also resulted in an increase in complaints about rogue lenders who often misuse clients’ data and employ aggressive recovery strategies including threats and extortion.
By May, 1,415 of these complaints had been filed with the SECP against licenced digital lenders and 181 against illegal ones.
“The lending mafia is blackmailing simple people through Facebook and other social media platforms. A campaign should also be conducted to the awareness of consumers so that they do not become victims of the blackmailing mafia in this way.
“People should also file complaints of such applications with PTA, FIA Cybercrime and local police,” read the statement.
