Google Restricts Loan Apps From Accessing Users’ Photos, Contacts

A relief has come for many Nigerians borrowing from loan apps as American tech giant, Google Inc., has introduced a new policy prohibiting the apps from accessing photos and contacts of users. 

According to Google, this policy takes effect from May 31, 2023.

The policy, according to the American tech giant is to address the rising privacy concerns from loan apps, most especially in Nigeria. 

This policy is in addition to earlier issued requirements for loan apps in Nigeria, which mandated them to submit an approval document from the Federal Competition and Consumer Protection Commission (FCCPC).

The FCCPC said new Google’s policy to ban loan apps from accessing user contacts, and photos is one of the success stories of the Commission’s partnership with Google as it continues to sanitize the digital lending space in the country. 

While announcing the new policy update on its developer policy page, Google said:

“We’re updating our Personal Loans policy to state that apps aiming to provide or facilitate personal loans may not access user contacts or photos.

“Apps that provide personal loans, or have the primary purpose of facilitating access to personal loans (i.e., lead generators or facilitators), are prohibited from accessing sensitive data, such as photos and contacts.”

In addition to that, Google said the loan apps must also provide all the necessary information about their interest rates, repayment plans, applicable fees, and charges on the Play Store to guide users.

“Personal loan consumers require information about the quality, features, fees, repayment schedule, risks, and benefits of loan products in order to make informed decisions about whether to undertake the loan,” Google said.

Until now, loan apps in Nigeria make it compulsory for users to grant permission to access their photos and contacts. This access is used to blackmail the user in case of default, thus raising privacy concerns.

Meanwhile, the Nigeria consumer regulatory agency, the Federal Competition and Consumer Protection Commission (FCCPC), described the policy as a positive outcome of its partnership with Google to sanitize the digital lending space.

According to the Chief Executive Officer of the FCCPC, Babatunde Irukera, the continuous violation of people’s privacy and unethical recovery practices led to the introduction of an interim registration framework for digital lenders in partnership with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), and the Nigerian Communications Commission (NCC).