PUDUCHERRY: There has been a steep rise in the number of complaints against instant loan apps levying high-interest rates, extorting consumers and misusing their data. The cyber cell of Puducherry police received 20 complaints in the past six months.
Based on the complaints, the cyber cell registered an FIR under Section 66(E), 67 and 67(A) of the Information Technology Act, 2000, and 420 of the IPC against the loan apps on Google play on July 9.
SP (Cyber Cell) Shubham Ghosh told The New Indian Express that the cyber cell has shortlisted 63 such apps after complaints of harassment and threats made by loan recovery agents and is investigating. These apps are not listed as valid and legal by the RBI.
Most of the complainants are students, housewives and small traders. These apps attract customers by giving out instant loans without asking for any procedures, unlike banks, said Inspector Manoj, the investigating officer.
By giving loans, the app gets access to the customer's PAN card, bank account number, Aadhar, contacts and profiles. They give a portion of the loan applied and then start extorting money from the borrower on the pretext of interest and other charges.
A battery shop owner who borrowed Rs 4,000, ended up paying Rs 40,000, while another man who borrowed Rs 10,000 have so far paid Rs 80,000, said Manoj. Even then there is no relief as the demand for payment continues. If the customer refuses, they get blackmailed. Obscene messages and offensive morphed images with a person of the opposite sex get sent to the people in the customers' contact list, Manoj added.
Women who borrowed a few thousands of rupees find themselves in a soup after such morphed images were sent to their husbands. We had to call their husbands and explain the situation, he added.
A student of BSc Forensic Science at Aarupadai Veedu Medical College, in his complaint, said he took loans from multiple apps amounting to Rs 70,000. Even after he repaid the loan with interest, agents called him to extort more. When he did not respond, they, without authorisation, accessed photos from the gallery of his mobile phone, morphed them with sexual images and sent them to his contacts.
India has witnessed an emergence of instant loan providers through smartphone-enabled fintech lending companies. The Maharashtra police cyber crime team recently wrote to Google Play Store, asking to remove 69 loan apps after receiving hundreds of complaints of harassment and threats made by fraudulent loan recovery agents. “We are investigating the complaints and will take appropriate action," said Ghosh.