Plea In Hc To Frame Guidelines To Regulate Online Loan Applications, Legal News, ET LegalWorld – Legal Firms

Madurai: The Madras high court on Monday sought a response from the central government on a plea which sought to frame guidelines to regulate online loan applications.

A division bench of justice R Mahadevan and justice J Sathya Narayana Prasad was hearing a public interest litigation (PIL) petition filed by S Ayyaa, an activist from Tirunelveli district.

The petitioner stated that many people fall prey to these online loan applications. The modus operandi is to entice the people by disbursing the loan amount immediately, however, subsequently heavy interest is charged.

When a person is using such a loan application on his phone, people who run such an application gain access to all the data on their phones. The loan applications are also involved in data phishing. With the rapidly growing number of internet and smartphone users in India, the number of scams and fraudulent activities targeting them has also grown steadily.

The petitioner stated that financial frauds particularly target vulnerable individuals like the elderly or financially illiterate. He also stated that suicides are also reported in cases where the people are threatened by the agents seeking high interest.

Though he had submitted a representation to the authorities, the same was not considered. Hence, the petitioner moved the HC Madurai bench.

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