In a significant move aimed at preventing the rampant issue of financial exploitation through online loan scams, the Securities and Exchange Commission of Pakistan (SECP) has implemented stringent regulations for Easy Loan Apps.
At a workshop in Islamabad on Tuesday, SECP officials disclosed their proactive approach to address online scams, particularly those targeting individuals with exorbitant interest rates. The new regulations now limit online companies from offering loans exceeding Rs. 25,000 to a single user.
As part of these measures, companies are now prohibited from imposing charges on customers that exceed double the loan amount during the repayment process. This initiative is designed to shield consumers from predatory lending practices that have been prevalent in the industry.
According to SECP, individuals are now restricted to borrowing a maximum of Rs. 75,000 concurrently from three different lenders. This step is a direct response to the prior exploitation of consumers, with companies previously charging over five times the tax on loans.
Simultaneously, SECP officials revealed ongoing considerations for electronic voting in companies’ general meetings to enhance transparency and streamline decision-making processes. The regulatory body also sternly declared the prohibition of trading through WhatsApp in the name of broker houses, emphasizing that such practices would face legal consequences.
Furthermore, the stock markets are undergoing enhancements, including the implementation of call-recording capabilities. Acknowledging the challenges associated with proving insider trading cases in court, SECP officials expressed unwavering commitment to investigating and penalizing such offenses, ensuring a more secure financial environment.
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