Think before granting access to your contact list to lending apps. "Telangana Woman Dies by Suicide"

Extreme steps?
No banking entity/NBFC can defame any person by messaging the contact list.
Only guaranter can be contacted in case of loan-default.
If they try to defame you by any other means you can take strict(legal) actions against them.

These money lending apps use a loophole in our banking regulation to carry out their lending activities in India without directly getting registered with the RBI.

They take an authorization from an existing NBFC in our country, something like a sub agent for an NBFC to carry out this money lending activities.

No no bhai, this is incorrect.

First of all, any data accumulated through false pretenses is illegitimate activity. And here, its completely about personal data misuse.

Recovery agents do try many possible measures, but they’re limited to vocal & legal threats. In small towns, they also threaten by taking some objects from house and all.

So however it may seem as a softer method, sending loan default messages to contacts, that too unsolicited ones, not only is a type of mental harassment but also not at all legal. Loan providers may call only 2-3 references whom the defaulter provided while applying for loan. No one else. This is complete breach of privacy coupled with data misuse.

So yes, this kind of mental harassment and public shaming based on illegitimately collected personal data can be indeed considered as abetment to suicide, if it acted as sole reason for pushing the person to commit suicide. Doesn’t matter if the deceased had weak mental state or not, but if this was the sole reason, it is indeed abetment and simply not acceptable.

If you still think this was a softer approach and its okay and unfortunate happens and all that, it implies you’re not taking mental health issues seriously, which you totally should.

Moreover, this particular matter was of only a few thousand of rupees. Everyday people apply for home loans worth crores of rupees, do banks ask to submit entire contact list data? Otherwise going by this logic, banks should have been even asking for bank account access of people given the high value of amount there. But no, this doesn’t happen because this level of personal data is not a required document under KYC. The only data that should be with the loan provider should be data as per KYC requirements, nothing else. This entire loan business is a risk based business, which the loan provider understands and accepts while entering into this business. Enough legal remedy is already available to providers for defaulters, so human harassment cannot be made acceptable at any instance. The provider could have also approached local police or district court, but they do not, because they’re aware of their misdoings in the first place and the consequences of that.

True… Once money comes kn pocket… Dey feel dsy earned it… No need to return any1

That’s awesome

Andriod and many apps are predatory now a days, I was also very much surprised about paytm it says “mandatory permissions” now we better have a phone for just offers with no data or SMS