Google is implementing new policies on its Play Store platform to protect users from predatory lending practices by digital loan apps.
The move comes just a few days after the Federal Government of Nigeria licensed 117 digital loan apps to serve Nigerians. Starting May 31, loan apps will no longer be able to access sensitive user data such as photos, videos, contacts, precise location data, and call logs.
Grow your business with us
The policy applies to all loan apps operating in Nigeria, including those that offer loans directly, lead generators, and those that connect consumers with third-party lenders. In addition, Google has set specific instructions for loan apps operating in Nigeria, requiring them to comply with the limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022, set by the Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria.
Loan aggregators are also required to provide certification and documentation for their digital lending services and contact information for every partnered Digital Money Lender (DML). Google’s announcement follows the FCCPC’s statement that only 119 out of 173 loan apps have received full approvals, while 54 currently have conditional approvals.
The commission has also banned illegal online banks.