The Google Play Store has updated its personal loan apps policy by specifically limiting apps that require repayment in full in 60 days or less from the date the loan is issued.
The new developer policy aims to limit mobile apps that encourage uncontrolled borrowing as concerns on lending malpractices grow.
Previously, Google Play Store had banned mobile apps that expose users to deceptive or harmful financial products and services.
With the financial services updated policy, the restrictions now stand as follows:
Binary options – Restrict apps that provide users the ability to trade binary options
Cryptocurrencies– Restrict apps that mine cryptocurrency on devices and only permit those that remote manage the mining of cryptocurrency
Personal loans – Restrict short-term personal loan apps that promote loans with a repayment in full in 60 days or less from the date of loan issue.
The updated policy is especially restrictive within the United States where personal loans with an Annual Percentage Rate (APR) of 36% or higher are not allowed. These apps are now required to display their maximum APR, calculated consistently with the Truth in Lending Act (TILA).
The affected firms have been given 30 days to comply with the directive.
The Digital Lenders Association of Kenya (DLAK) is in the process of self-regulating and lobbying for friendly regulation despite the CBK governor’s statement that the industry cannot self-regulate and instead needs to come under the law.
Despite this back and forth, it is clear that predatory lending poses a big risk to consumers and the industry and Google’s recent update is a move in the right direction.
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