Google will soon block credit apps from accessing your contacts and photos

Google is cracking down on money-lending apps to prevent abuse when users have difficulty repaying.

Google will implement a new directive for apps that allow personal cash loans starting May 31 to protect users from abuse and other harassment. The tech giant has updated its usage guidelines to prevent lending apps from accessing users’ contact lists. They will also no longer be able to access user photos and videos, whether they are stored on the phone itself or on external storage.

Google cracks down on money-lending apps

This is just one of changes Mountain View has made over the past year following several reports of harassment in certain markets including India, Pakistan, Kenya and the Philippines. Typically, money-lending applications request access to contacts and media files before allowing a transaction to complete. The fact that people can easily install these apps on their phones makes them a very convenient solution for sudden financial problems. But since interest rates are often exorbitant, a large number of borrowers have difficulty repaying the loan. That’s when the abuse happens.

These services may start sending more than questionable messages to users’ contacts, including casual acquaintances or colleagues, in an attempt to humiliate them and force them to pay. Some even go so far as to threaten them and their families with physical harm. As TechCrunch reports, in some cases, these unfortunate borrowers have gone so far as to commit suicide.

to prevent abuse when users have difficulty redeeming

In an attempt to keep these lenders in check, Google has introduced stricter rules for India, Indonesia, the Philippines, Nigeria, Kenya and Pakistan, requiring them to provide permits and other documents from agencies authorized by governments. In the United States in 2019, Google banned payday loan apps with an annual rate of 36% or more. And in Pakistan, non-banking financial institutions will be allowed to publish only one loan app on the Play Store from May 1st.

A year ago, the tech giant tightened its app lending measures in the Philippines. And there are still many such applications in the Play Store, and the stories of users who pursue this kind of service on a daily basis are legion. This tightening of tone was clearly not enough. Therefore, Mountain View has blocked access to contacts and media files to limit their influence, which is a step in the right direction.