Google to Stop Money Lending Apps from Collecting Personal Information from Users

Google will update its rules for personal loan apps on Android devices after some companies collected personal data from users, making it easier to force them to pay.

Some money lenders go to extreme lengths when trying to collect debts from clients. One of the measures was to collect information from the people's devices, including accessing call logs, contacts, videos, photos and even location.

"We don't allow apps that expose users to deceptive or harmful financial products and services," said Google. "For the purposes of this policy, we consider financial products and services to be those related to the management or investment of money and cryptocurrencies, including personalized advice."

"If your app contains or promotes financial products and services, you must comply with state and local regulations for any region or country that your app targets - for example, include specific disclosures required by local law."

According to a TechCrunch article, debt collectors have started taking personal information about people so that they can contact third parties, like family, friends, and even place of work.

In some instances, debt collectors even have gone so far as to manipulate images stolen from devices and blackmail the victim into paying. Some reports even say that a number of people targeted by these debt collectors have taken their own lives.

This seems to be a practice in some markets, such as India and Kenya. Google's response was to ban many of these apps from the store and to enforce stricter rules for the existing applications. Some of these rules are to restrict the apps from accessing information they don't need on people's devices.

The new rules will be enforced starting on May 31.