THIRUVANANTHAPURAM: The government has taken decisive action against loan apps that charge exorbitant interest rates, host online gambling activities like rummy and threaten to compromise users' mobile data. The IT department has formally requested the central government to ban 172 apps. 'Kerala Kaumudi' reported an incident where a Chinese loan app threatened to expose a housewife from Vanchiyoor by publishing her nude picture even though she hadn't taken any loan unless she paid Rs 18,000.

While the Center has already banned 232 Chinese apps due to their involvement in online scams leading to fatalities, approximately 200 similar apps are still active. The police receive more than two dozen complaints daily regarding these apps. They function without adhering to RBI regulations and are in violation of the Moneylenders Act. Clicking on their links can clandestinely install the app on one's phone, access contacts, cameras and gallery and steal personal data. Having Aadhaar-PAN images in the phone's gallery can falsely indicate a hefty loan has been taken. Subsequently, threatening messages claiming repayment failure are sent. Many individuals who borrowed money to play online games ended up trapped in insurmountable debts. Some have paid up to 4.5 lakhs against a 1 lakh loan but remain indebted.

VH Vineeth, a contract employee of ISRO ended his life after accumulating a debt of 25 lakhs. He had borrowed money via an app to play online rummy. Following his default on repayment, the loan company not only insulted Vineeth but also circulated a photo to his friends and colleagues. Seeking assistance from the Centre, action is to be taken against apps originating from Indonesia and Cambodia within seven days.

Instances of harassment due to loan defaults include:

1) Broadcasting a message to everyone in the contact list branding the defaulter as a financial fraudster.

2) Sending fake messages to their phones, claiming friends and relatives acted as loan guarantors.

3) Relentless calls from loan fraudsters demanding payment, day and night.

4) Initiating a WhatsApp group named 'Defaulter' and sending messages on behalf of the defrauded individual.

5) Morphing images from the gallery to send obscene content and messages.