The article discusses the issue of predatory loan apps in India and other developing markets, which are preying on individuals seeking financial assistance. These apps use high-interest rates, hidden fees, and aggressive debt collection practices to exploit users. The Reserve Bank of India (RBI) has issued guidelines to regulate digital lending platforms and prevent harassment of borrowers.

However, despite these efforts, many predatory loan apps continue to operate in the market, taking advantage of lax regulations and lack of awareness among consumers. Google and Apple have been criticized for not doing enough to restrict privacy-violating behavior by these apps.

The article highlights several instances of predatory loan apps in India, including those that charge exorbitant interest rates and use intimidation tactics to collect debts. It also mentions the role of self-regulatory organizations (SROs) in addressing consumer grievances and suggests that the RBI should set up a grievance mechanism to handle complaints more efficiently.

Experts point out that developing countries are particularly vulnerable to predatory loan apps due to lack of regulation and financial literacy among consumers. Countries like Mexico, Kenya, and India have seen instances of harassment and abuse through these apps, with perpetrators targeting individuals seeking financial assistance.

To address this issue, the RBI has advised regulated lending platforms to adopt fair methods and practices related to loan recovery agents and refrain from intimidation or harassment of borrowers. However, some experts believe that more needs to be done to prevent predatory loan apps from exploiting consumers.

Key points:

• Predatory loan apps in India are charging exorbitant interest rates and using aggressive debt collection practices.
• RBI has issued guidelines to regulate digital lending platforms and prevent harassment of borrowers.
• Google and Apple have been criticized for not doing enough to restrict privacy-violating behavior by these apps.
• Self-regulatory organizations (SROs) can play a crucial role in addressing consumer grievances related to predatory loan apps.
• Developing countries are particularly vulnerable to predatory loan apps due to lack of regulation and financial literacy among consumers.