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How App-Based Lenders Are Harassing, Sucking Borrowers Dry

Prabhu Mallikarjunan (The FEDERAL)

12 June 2020 

Sunil Kumar, a migrant worker from Uttar Pradesh’s Aligarh, works as a painter in New Delhi and earns around Rs.400 a day. About nine months ago, Kumar fell short of Rs.2,000 required for his brother’s treatment. Banks wouldn’t lend to him since he didn’t have a regular job. So he took a loan from Wifi Cash, an app-based platform run by Delhi-based non-banking financial 

company (NBFC) Chadha Finance Ltd. Just by submitting his Aadhaar number and photo ID and selfie. With no source of income in the wake of the coronavirus pandemic and the ensuing lockdown, Kumar was unable to pay the amount. The lending company charged him 1% every day as penalty. His overdue charges during the lockdown period shot up to Rs.9,792.

But between March and May, Kumar alleges that Wi-Fi cash accessed phone contacts (the permission to which he gave while downloading the app on his android phone), and even called up his immediate relatives. Also “The recovery agent verbally abused and harassed me over the phone and posted fake FIR copies and legal notices on WhatsApp chat,” Kumar says.

Like Kumar, there are thousands of customers who’ve fallen prey to such lending platforms which are misusing data, overcharging customers and taking advantage of the digital illiteracy

This story was published on The Federal news website on 11 June 2020

Courtesy: The FEDERAL 

Ref.:

https://www.moneylife.in/article/how-app-based-lenders-are-harassing-sucking-borrowers-dry/60621.html

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