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In a heinous act of cyber harassment, online lending apps are bullying and threatening users to collect their loan debts. The borrowers have reported online debt-shaming, excessive calls and messages.
Predatory loan mobile apps have access to troves of data about the borrowers and use it for harassment. Read to learn more about loan app harassment and how to file a complaint.
1. Badgering Circular Text Messaging
One of the most common forms of loanmoto harassment is the use of circular text messaging to harass debtors. This involves sending multiple messages with payment reminders to the borrower, often including threats and threatening to report them to credit collection agencies. This is a form of harassment that can be very intimidating for the victim and can cause them to stop paying their debts. It also can lead to a significant loss of income as the debtor is unable to pay their loans.
2. Threats
The proliferation of instant loan apps has brought about a new breed of aggressive debt collectors, who often employ abusive and humiliating tactics to coerce borrowers into paying their loans. Some of these loan recovery agents even resort to public shaming on social media sites. The proliferation of loan app harassment is a serious concern that requires immediate action.
Harassment by loan application companies can be difficult to track as most of these apps are not registered under the Right to Information Act. This makes it easy for them to conceal the identity of the person they are contacting, and also use spoofing technologies to hide their phone number so it looks like they are calling someone else.
Using SMS and text messaging services to harass customers is not only illegal but can lead to valley loan reviews severe consequences if it is repeated. In addition, consumers who get into this trap can be exposed to identity theft and fraud, which could lead to more financial issues for them.
Recently, a woman committed suicide in Telangana after being harassed by the executives of a loan app. She had availed a loan of Rs 1 lakh and approached the Cyber Crime police after receiving threats. Other such incidents have been reported across the state. However, there are ways to prevent such occurrences from happening.
3. Threats of Legal Action
A loan app’s access to a trove of personal information can be abused to harass, bully, and shame people who are struggling to repay their debt. This is especially true for those with bad credit. Loan app harassment can include a variety of tactics such as naming and shaming, intimidation, and even fake legal notices.
The abuse of borrowers by loan recovery agents can be so severe that many have committed suicide. In one case, an engineering student in Bengaluru reportedly killed himself because of the pressure from loan app staff to make repayments.
If you’re suffering from loan app harassment, it is a good idea to talk with an experienced legal professional. An attorney can help you navigate the complex legal system and get the rights that you deserve. This is the best way to protect yourself from loan app harassment. A lawyer can also advise you on what steps to take next to stop the harassment from continuing.
4. Fraud
Those who borrow money through loan apps are often subjected to fraud and exploitation. Lenders use social media, apps, cold calls, email, flyers, and other means of advertising to find borrowers who are looking for quick money. They then harass those who are unable to repay their debt by making threats, calling repeatedly, and using profanity in text messages. They may also threaten legal action and even extort victims with fines or other penalties.
In one instance, a man who took loans from several instant loan apps was so harassed that he attempted suicide and died five days later. His family said that he had been contacted numerous times by lenders who threatened to sue him or confiscate his property.
The company that allegedly sent him text messages and phone calls was a firm called Realm Shifters, which is owned by the FESL BPO group. The company is a collection agency for online lending applications such as Loanmoto, Lendpeso, Weloan, and Applecash. Its executives have been arrested by the Securities and Exchange Commission Task Force on Online Lending Applications, as well as the Philippine National Police Anti-Cybercrime Group, for alleged violations of the Fair Credit Collection Practice Act.
To protect yourself from loan app harassment, use an app like App Lock to limit the amount of information an app can access on your smartphone. Also, make sure to keep track of your call and text history to document any unwanted activity.
