Predatory Loan Apps Are Thriving in Google Play Store, Despite Ban

Tens of thousands of people have fallen victim to predatory loan apps, which extort users using sensitive information from their phones. Google has changed its policy to prevent the loan apps from being listed on the Play store, but enforcement is unreliable. Rest of World: According to Mexico City’s Citizen Council for Safety and Justice, a consumer watchdog group, 135 reports to local authorities have been filed against JoyCredito for fraud and extortion. But despite the government attention, the app is still available to download from the Google Play store. For years, apps like JoyCredito have been exploiting borrowers from Mexico to India. They lend small amounts of money with few requirements and very high interest rates to financially vulnerable people — and then extort them when the loan is due. After years of mounting pressure from watchdog groups, Google explicitly banned the apps from the Play store in October. But stories like those of Macias Gonzalez show how widespread the apps still are — and how ineffective Google has been at enforcing its own policy.

Rest of World presented Google with 15 instances of exploitative loan apps based in Mexico that explicitly violate the terms of the Play store. All of them were still available in the store as of press time. Of the 15 apps, 12 explicitly asked for access to either the camera roll or contacts in the Google Play store’s terms of services. Two others specified full access only in external documents. One other gave no data access information. Rest of World also found 10 apps in Peru that have been flagged as exploitative by SBS, a national body that oversees banking, insurance, and private pension. All the apps are still available for download on the Google Play store.

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