Apple has removed about six predatory loan apps from the App Store in India after concerns from users. These apps were found to use unethical tactics such as posing as financial institutions, charging high fees, and threatening borrowers for repayment.
In recent days, some users have reported that certain quick-loan apps, such as White Kash, Pocket Kash, and Golden Kash, have been appearing on the Top Finance Apps chart.
These apps require unnecessary and invasive access to users’ contact lists and media. Based on hundreds of user reviews, these apps charged excessively high unnecessary fees. They engaged in unethical practices such as charging “processing fees” that are half the amount of the loan and imposing exorbitant interest rates.
Users were also being harassed and threatened for repayment. The loan apps threatened to message users’ contacts if payment was not made before the due date. One user reported that the app company even threatened to create fake nude of her and send them to her contacts.
Apple said that certain loan apps were taken down from the App Store as they went against the rules set by the Apple Developer Program License Agreement and guidelines. Apple found that the apps falsely claimed to be associated with a financial institution.
In 2022, the App Store prevented over $2 billion in fraudulent transactions, turned down almost 1.7 million app submissions that didn’t meet Apple’s standards for quality and safety, and closed 428,000 developer accounts due to suspected fraudulent activity.
“The App Store, and our App Review Guidelines, are designed to ensure we are providing the safest experience possible to our users,” said Apple. “We do not tolerate fraudulent activity on the App Store, and have stringent rules against apps and developers who attempt to cheat the system.”
Earlier this year, Google had also removed over 3,500 personal loan apps from Play Store in India over policy violations in April.
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