NPC bans online loan applications for breach of privacy
The National Commission for the Protection of Privacy (NPC) has ordered the closure of four online loan applications (OLA) – JuanHand, Pesopop, CashJeep and Lemon Loan – due to privacy breaches.
In a statement released on Wednesday, the AFN said it had opened an investigation into the said ALOs amid complaints of unauthorized use of personal data, resulting in harassment and shame on borrowers.
The ban on loan applications will remain in effect until lifted by the AFN.
The privacy watchdog said apps had access to borrowers’ personal information through their mobile devices, including social media contacts and data. The NPC called this “excessive” because OLA operators can “use” the information to “harass and shame delinquent borrowers before people on their mobile device contact lists to collect their debts.”
“These online lending applications have raised many red flags and the companies that operate these applications are presenting problematic data actions that expose borrowers to serious privacy risks and harms,” the commissioner said. to the protection of privacy Raymund E. Liboro.
The findings of the Complaints and Investigations Division of the NPC revealed that the OLAs violated the principles of transparency, legitimate purpose and proportionality of the Data Protection Act 2012 and the NPC publication on processing. personal data for loan transactions.
“The companies running these apps were given the opportunity to respond to the NPC’s findings, but two of the apps failed to file a position, while the other two failed to convince the Commission why it shouldn’t. not impose the ban, “the privacy watchdog said.
The AFN is also studying the possible criminal liability of directors, officers and agents of OLA operators.
The privacy agency ordered Wefund Lending Corp in four separate orders. (JuanHand), Joywin Lending Investor Inc. (Lemon Loan), Cash8 Lending Corp. (CashJeep) and Populus Lending Corp. (Pesopop) to stop processing the personal data of borrowers. .
The AFN informed the National Telecommunications Commission and Goggle Llc. to eliminate erroneous OLAs.
Currently, the privacy watchdog said it is studying and investigating more than 200 OLAs available for download.
NPC cracked down on OLAs, banning 26 loan applications in 2019 for failing to respond to allegations made against them, including the use of personal data to shame delinquent borrowers.
These are no longer publicly available for download, installation or use, NPC said.
Citing statistics from Google, NPC noted that JuanHand has downloads of over one million; Lemon Loan and Pesopop, over half a million; and, CashJeep, over one hundred thousand.