AIRLINK 186.31 Increased By ▲ 1.39 (0.75%)
BOP 10.28 Increased By ▲ 0.67 (6.97%)
CNERGY 7.53 Increased By ▲ 0.27 (3.72%)
FCCL 37.01 Increased By ▲ 0.58 (1.59%)
FFL 14.66 Increased By ▲ 0.32 (2.23%)
FLYNG 24.39 Increased By ▲ 0.11 (0.45%)
HUBC 129.30 Increased By ▲ 2.89 (2.29%)
HUMNL 13.51 Increased By ▲ 0.71 (5.55%)
KEL 4.45 Increased By ▲ 0.16 (3.73%)
KOSM 5.98 Increased By ▲ 0.04 (0.67%)
MLCF 43.42 Increased By ▲ 1.15 (2.72%)
OGDC 200.97 Increased By ▲ 2.46 (1.24%)
PACE 6.07 Decreased By ▼ -0.01 (-0.16%)
PAEL 39.65 Increased By ▲ 1.90 (5.03%)
PIAHCLA 16.93 Decreased By ▼ -0.16 (-0.94%)
PIBTL 7.81 Increased By ▲ 0.07 (0.9%)
POWER 9.01 Decreased By ▼ -0.21 (-2.28%)
PPL 171.88 Increased By ▲ 3.79 (2.25%)
PRL 34.71 Increased By ▲ 1.96 (5.98%)
PTC 22.35 Decreased By ▼ -0.07 (-0.31%)
SEARL 105.16 Increased By ▲ 3.28 (3.22%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 35.33 Decreased By ▼ -0.20 (-0.56%)
SYM 17.52 Decreased By ▼ -0.40 (-2.23%)
TELE 8.25 Increased By ▲ 0.08 (0.98%)
TPLP 11.70 No Change ▼ 0.00 (0%)
TRG 66.23 Increased By ▲ 0.11 (0.17%)
WAVESAPP 11.75 Decreased By ▼ -0.04 (-0.34%)
WTL 1.53 No Change ▼ 0.00 (0%)
YOUW 3.70 Decreased By ▼ -0.09 (-2.37%)
BR100 11,738 Increased By 128.2 (1.1%)
BR30 34,641 Increased By 524.7 (1.54%)
KSE100 111,378 Increased By 1055 (0.96%)
KSE30 34,797 Increased By 386.1 (1.12%)
Business & Finance

SECP cautions against use of ‘unauthorised lending apps MoneyBox and MoneyClub’

  • Says both companies are gaining public confidence by using names of licensed NBFCs
Published February 13, 2023

The Securities and Exchange Commission of Pakistan (SECP) on Monday caution the public against falling prey to unauthorised lending apps MoneyBox and MoneyClub.

The SECP observed that these apps were gaining the public confidence by using the names of licensed Non-Banking Finance Companies (NBFCs) to offer lending services without any regulatory approval.

“SECP has not granted any permission to its licensed NBFCs, QistBazaar (Pvt) Limited and QistPay BNPL (Private) Limited, to launch MoneyBox and MoneyClub,” said SECP spokesperson on Monday.

SECP briefs NBFCs on improved regulatory requirements

“This unauthorised activity poses serious threat to the public because these applications have been operating without regulatory approvals,” it added.

The SECP maintains a publicly available list of licensed NBFCs and digital lending apps that are permitted to offer lending services.

“The public is encouraged to verify the regulatory status of an NBFC and its authorised app before making transactions with a lending entity,” the spokesperson added.

Issued by unlisted public, private cos: SECP issues procedure for purchase of shares

“We are acting to protect consumers and promote fairness and transparency in the financial services industry. We are notifying law enforcement agencies to take legal action against the operators of these apps. The SECP advises the public to use authorised apps offered by entities licensed to operate in Pakistan.”

The SECP on Monday also asked the public to register complaints or evidence against the companies involved in unauthorised activities and illegal lending with the Commission.

Last month, SECP wrote to Google and Apple, urging them not to allow unlicensed digital lending applications on their respective app stores.

SECP Chairman Akif Saeed said that applications of unregistered and unlicensed non-banking service providers should not be placed on Google Play Store and Apple Store.

The chairman further added that SECP was collaborating with mobile wallet and digital payment solution providers such as Jazz Cash and Easypaisa to prevent illegal digital lending.

In December, Competition Commission of Pakistan (CCP) started a probe into app-based ‘nano’ and ‘micro’ personal loan providers, with initial findings indicating that the businesses were looking to provide services without fulfilling legal requirements of non-banking microfinance companies (NBMFCs).

CCP said that an initial investigation revealed that these micro loan providers were charging higher-than-advertised interest rates, exploiting mainly the lower and middle income groups.

The CCP said that it has also found instances of faulty claims of data privacy and security from these loan providers and it believed that they collected personal data on the pretext of offering loans.

Comments

Comments are closed.

Shahzad Feb 21, 2023 05:07pm
Salam I just want to know about udharpaisa app is this app registered with secp or other government concerns or not
thumb_up Recommended (0)