Just in the past few days, many cases of illegal loan apps of harassing people to recover their loans have come to light. The article speaks about a 32-year man residing in Malad, Mumbai who took his life after he was tortured by recovery agents. They shared the morphed photograph on a WhatsApp group among his relatives and friends. This affected his mental health and forced him to end his life.
A number of illegal loan applications, such as Hedisy, have anonymously sent messages displaying abuse and threats against loan repayment. In order to determine eligibility, they have illegally generated their information and credited money to their accounts without any authentication. After a few days, they asked for money credited with high amount interest charges.
It has come to light that young people have been the main target of such illegal apps. Their portrayal of lending money has tempted them to lend money. There have been many victims of this wrongful trauma caused by recovery agents. Generally, youths are the ones affected by these illegal app loans, and a complaint has been filed against them. But unfortunately, no action was taken against them by the police.
The recovery agents of illegal apps snoop on your data by taking your Aadhar card or Pan card number. Afterwards, they transfer the money without the customer’s consent directly into their account. Once this is done, they call the customer to demand repayment with very high interest rates. As soon as the given amount isn’t paid on the due date, they start traumatizing the clients by threatening to exploit their image and defame them in front of their relatives and friends.
As per RBI’s statement more than 600 illegal loan apps are operating in India. Out of which approx. 200 are being officially removed from the Google Play Store and the App Store. If you are stuck in one of these threads, you don’t have to worry much about the apps that are officially discontinued. But, if you are a customer of an illegal app, then you should directly visit any official NBFCs that will help you in dealing with such illegal practice.
In the event that they harass you for any other problems, you can get a solution against the illegal practice of debt collectors from SingleDebt. They help to stop recovery agents from harassment and take legal action against them by lodging a legal draft with the RBI, filing a complaint with the police and other legal documentation.
The report by RBI suggests that there will be separate legislation to prevent illegal digital lending activities. RBI also states that upcoming lending norms will empower customers to take a loan from a dependable firm or platform. There will be certain baseline technology standards and compliance with those standards as a pre-condition for offering digital lending solutions. Disbursement of loans will happen directly into the bank accounts of borrowers.
If you or someone you know has been a victim of illegal loan apps, there are solutions for you. SingleDebt can help cease harassment from these agents and handle the legal side for you. We urge you not to resolve this alone as this can lead to further harassment. Contact SingleDebt on +91 961 910 3594 or fill out the form either on the home page or contact page.
SingleDebt specializes in effective debt management solutions, helping individuals and businesses reduce their debt and regain financial stability.
