App-Based Instant Loan Companies Abuse Customers For Repayment
By Dheeraj Fartode:
A total of 12 complaints were received by Cyber Cell
The allure of getting fastest loan approval through instant money loan mobile apps can get you in trouble. Some of these apps not only access customers’ phone contacts, but also use these details to abuse the customer if they fail to repay the loan. Senior police inspector and head of cyber cell Raghvendra Kshirsagar told “ The Hitavada ” that more than 12 such complaints have been received so far in which company employees have abused customers. PI Kshirsagar explained that needy customers fall prey to offers from companies with their eye-catching advertisements.
“After seeing the ad, the customer thinks it’s the easiest way to get a loan and install the company app on their mobile phone,” he said. After installation, the app asks for permission to access contacts, phone calls, and media and the user grants permission without a second thought. With these permissions, central corporate servers collect all contacts and media from the customer’s mobile phone. Another policeman informed, the problem begins after the approval of the loan by the company. If a person gets a loan of Rs 5,000, the company only debits Rs 3,500 from their bank account after deducting Rs 1,500 processing fees.
Nationalized or reputable private banks offer an annual interest rate on loans, however, these app-based companies only offer interest rates per day or per month. Therefore, the interest on the principal amount steadily increases without the customers knowing. When the customer fails to repay the loan, the company begins to abuse and threaten on their cell phone. Second, they use the customer’s contacts and start sending them messages about the customer. Even they use the customer’s WhatsApp Display Picture (DP), loan documents, and send the photos to contacts, including the customer’s parents or office staff, stating, “This man is a fraud and isn’t paying back our loan.” ” In one case, a Nagpurian had to terminate his loan by paying the company Rs 4.5 lakh due to the high interest rate, the official said.