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In August, Google announced a global crackdown on Android apps that offer short-term loans, saying it wanted to protect consumers from what it called “deceptive and exploitative” terms.
But five months later, payday-style applications offering fast money for one or two weeks are still easy to find in many countries on Google Play, the company’s marketplace for Android apps.
Some charge interest rates that can exceed 200 percent annualised.
Lending apps are particularly popular in developing nations such as Nigeria, India and Kenya, where millions of people don’t have bank accounts or credit cards but do have mobile phones.
The epicentre is Kenya, where an explosion in mobile lending and little government oversight has effectively made Google the arbiter of which apps customers can choose.
Despite the ban on loans that have to be repaid in fewer than 61 days, many apps available through the Google Play store are offering shorter terms to Kenyans.
Some lenders appear to be ignoring the rule, hoping Google, a division of Alphabet Inc., doesn’t notice. But there’s also confusion about whether the policy really prohibits short-term lending.
Dan Jackson, a Google spokesman, declined to explain why short-term lending apps are still featured. “When violations are found, we take action,” he said in a statement. He wouldn’t say how many such actions have been taken. — Bloomberg.
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