With reports of app-based personal loan disbursal firms harassing customers coming in from different parts of the country, the Cyberabad Police has cracked down on two companies, held six persons and served notices on Google and nine NBFCs.
The Telangana police has deputed special teams to Bengaluru and Delhi as part of the investigation into the fraud. As many as 70,000 people have reportedly took loans from the apps, which are charging interest rates of up to 35 per cent.
The cops have put the Reserve Bank of India (RBI) on alert on the very high interest rates being charged by the apps and dubious methods that they followed for recovery.
“We have sent notices to Google, which is hosting the apps on its Google Play platform. We have also served notices on nine NBFCs for having association with the apps,” VC Sajjanar, Commissioner of Cyberabad Police, has said.
“During our investigation, we found that three instant personal loan apps -- Cash Mama, Loan zone and Dhana Dhan, and two companies Onion Credit Private Limited and Cred Fox Technologies linked to them are offering instant loans by charging a hefty interest,” he said.
Addressing a press conference on Tuesday, he said they had received five complaints so far on the harassment by the executives of the app.
Some victims alleged that the executive were using abusive language, while calling them for recovery of the loan amount. They were reportedly sending messages to all the contacts in victims phone numbers, damaging their reputation, whenever the consumers defaulted on their repayments.
“They offer ₹5,000 but deduct ₹1,180 upfront as charges and taxes. We found that there are a host of apps that are offering instant personal loans. It is a viscious circle, with consumers taking multiple loans from different apps,” he said.
He said the two companies with 110 employees, had signed agreements with nine NBFCs to acquire customers for them.
“After issuing loans to customers from their app, they divide the customers into different categories. They turn harsher and harsher depending on the delays in repayment,” he said.
The investigation found that Dhana Dhan application is not linked with any NBFC, while Cash Mama and Loan Zone mobile applications have tie-ups with nine NBFCs. The NBFCs are located in New Delhi, Nagpur, Bengaluru and Mumbai.
The police seized three laptops, three desktop computers, 22 mobile phones and frozen 18 bank accounts with an aggregate amount of ₹1.52 crore.
Caution
The police have cautioned the public not to download insta loan apps with no statutory licences. They asked them not to share personal credentials and bank details to strangers.
“You need to go through the terms and conditions and verify the licences of the companies that offer the loans. You should not download any app that asks access to your contacts, files and gallery on your phone,” they cautioned.