Indians facing extortion and data misuse in
droves by illegal loan lenders!

Indians facing extortion and data misuse in droves by illegal loan lenders!

Indians are more likely to adapt things that are readily available. We understand the need for money when consumers are stuck in a huge façade of financial crisis. Instant money, or as we like to call it, ‘LOAN SHARKS,’ is a way of demanding money back from you in an aggressive and distressing manner.

Majority of Indians are seen to be trapped in this situation where they use instant loan apps and are facing extortion and data misuse in large numbers. These are conducted by illegal loan lenders.

These illegal loan lenders ask for your basic information during the process of giving you an instant loan, and then charge you with high interest rates after a few days of lending you money. Your basic information gives them an advantage in morphing your data across your friends, relatives, and colleagues.

According to the Reserve Bank of India, it becomes difficult to fight against unregistered digital loan lenders as they are setting a mark for instant loans and later extorting and misusing consumer’s information. In a recent survey, it was found that people who were taking instant loans were getting threats from these sharks to their staff, family members, and household members.

In digital lending, 25% of annual interest is applied to your loan and the consumer’s data is misused in the process of collection.

This prompted the RBI to take cognizance of the survey findings and take further action on such instant loan apps. They initially took important steps to stop them completely. Hence, the Reserve Bank of India has prohibited non-bank prepaid payment instruments from loading credit.

Maharashtra police cyber-crime branch recently sent a message to Google Play store asking them to totally ban 69 loan apps after receiving hundreds of complaints regarding harassment and threats done by the collection agent.

According to the customers, some instant loan apps charge as much more of 500 percent interest rate and use extortion methods to collect money from the borrowers or loan defaulters within a few days after lending them money.

Additionally, people who have already repaid their debt have received harassment calls from the recovery agent for the purpose of collecting the debt.

Alternatively, there are many complaints filed at the police station regarding misuse of personal information such as Aadhaar cards, PAN cards, etc., being used and shared by a third-party agent for the purpose of collecting the loans.

They also track your location and send abusive messages to threaten you with the repayment of the loan.

We understand that people are struggling to meet their economic needs because of the impact of the pandemic. We want to know that your support and your dedication to covering your costs is essential. Therefore, we advise you to stay away from such digital illegal loan applications. All you will experience is harassment, mental torture, defamation, and huge interest charges. Don’t get sucked into such tempting solution, it will only lead to a stressful life.

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.