Crack Down On Sketchy Digital Lending Predominant In South Asian Market
The Securities and Exchange Commission of Pakistan elaborated that non-banking finance companies in Pakistan that pay out loans through digital channels including mobile apps will be now required to disclosure keys fact statements such as:
the credit amount they are granting to consumers annual percentage rates duration of the loan all fees and charges
In addition to that, the non-banking finance firms will also be required to share the key facts with consumers through audio, video, emails, or text messages in both English and Urdu languages. In a press release, the regulator stated: These firms will have no access to the borrower’s phone book or contacts lists or any sort of pictures on the device even if the borrower gives consent in this regard. The regulator further added: Pakistan’s Market regulator has taken this step due to a rise in mis-selling, breach of data privacy, and “coercive” recovery practices of licensed digital lending companies. Furthermore, it aims to safeguard the public interest as well. Neighboring country India also introduced strict rules surrounding digital lending as it has toppled the local fintech industry. Also Read: Here’s The Expected Poco C50 Launch Date – PhoneWorld
