Loan apps on Google Play Store will be restricted from gaining access to their users’ contacts or photos from May 31, 2023.
This came as the Federal Government said it would enforce the latest policy by Google, saying the action was consistent with the Nigerian authorities’ move to curtail the invasion of customers’ privacy by loan app firms.
It will be recalled that the Federal Government in recent time took some decisions which are aimed at tackling the violation of customers’ privacy by loan apps.
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The Federal Competition and Consumer Protection Commission had also recently registered 170 loan apps out of the 200 operating in the country.
Google, in its April 2023 policy updates, said the new policy update would provide respite for loan app users in Nigeria and other places that have become accustomed to crude loan retrieval methods employed by a majority of loan apps.
READ ALSO: Full List of Approved Loan Apps in Nigeria
Google said;
“Policy preview (effective May 31, 2023): This article previews changes included in our April 2023 policy updates.
“We are updating our personal loans policy to state that apps aiming to provide or facilitate personal loans may not access user contacts or photos.
“We are introducing additional requirements for personal loan apps targeting users in Pakistan. Personal loan apps in Pakistan must submit country-specific licensing documentation to prove their ability to provide or facilitate personal loans.”
This new policy is coming after the firm announced updates to its Developer Programme Policy, mandating digital money lenders in Nigeria, India, Indonesia, the Philippines, and Kenya to conform to regulatory rules or be taken down by January 31.
According to the firm, only digital money lenders that have adhered to and completed the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (as may be amended from time to time) by the Federal Competition and Consumer Protection Commission and obtain a verifiable approval letter from the FCCPC will be allowed on Play Store in Nigeria.
The Chief Executive Officer of the FCCPC, Babatunde Irukera, while commenting on the development noted that it was a welcome idea and shows that Google was institutionalising its regulatory policy.
He said,
“It is a welcome development effort and is consistent with the position the FCCPC has taken and what we are enforcing.
“Google is now institutionalising our regulatory effort as a policy, which is very welcome. It is certainly important for proper regulatory oversight of the industry, and we commend Google for taking a position that is consistent with our position as regulators.”
“Recall that we took this position earlier and what has happened is that Google has looked at the regulatory landscape, looked at the regulatory priorities, and is supporting those priorities by institutionalizing those regulatory priorities and position.”
The FCCPC recently stated that it has approved 173 digital lending applications to operate in the country. 119 of these got full approvals while 54 got conditional approvals.
This move became necessary after loan apps started harassing Nigerians by sending defaming messages to their contacts, and more.
