Pakistan’s markets regulator issued new guidelines for digital lending in the country, cracking down on several sketchy practices that it said have become prevalent in the South Asian market.
The Securities and Exchange Commission of Pakistan said Wednesday evening that non-banking finance companies that disburse loans through digital channels including mobile apps will be required to disclosure key fact statements such as the credit amount they are granting to consumers, annual percentage rates, duration of the loan, and “all fee and charges.”
“The lender shall also not be allowed to contact the persons in the borrower’s contact list, other than those who have been specifically authorized by the borrower as guarantors and who have also provided their consent to the digital lender at the time of loan approval,” it added.
The move follows the regulator noticing rise in mis-selling, breach of data privacy and “coercive” recovery practices of licensed digital lending companies” and to safeguard public interest, it said.
Pakistan cracks down on sketchy digital lending by Manish Singh originally published on TechCrunch