If you have ever applied for an online loan for your need then you may have come across some apps that promise quick and easy money. But not all of them are trustworthy or reliable. Some of them may be involved in fraudulent or illegal activities like charging extremely high-interest rates, violating your privacy or harassing you for repayment.
Loan app harassment is a serious problem that affects many borrowers in India. It can cause mental stress, financial loss, social disgrace, legal trouble and even suicide. In this article we will explain what is loan app harassment, why it is a serious problem. We will also describe the causes and effects of loan app harassment and provide practical and actionable advice on how to stop loan app harassment.
What is Loan App Harassment?
Loan apps harassment is a term that refers to the abusive or threatening behavior of some loan apps or their recovery agents towards the borrowers. It can take various forms such as.
- Calling or messaging you or your contacts repeatedly or at odd hours
- Using abusive or vulgar language or tone
- Threatening to harm you or your family or property
- Blackmailing you with your personal or financial data
- Posting your details or photos on social media or public platforms
- Filing false or frivolous cases against you
- Visiting your home or workplace without your consent
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Why is Loan App Harassment a Serious Problem?
Loan app harassment is a serious problem because it can have negative impacts on the borrowers such as.
- Mental stress: Loan app harassment can cause anxiety, fear, panic, anger, frustration, shame, guilt, depression and even suicidal thoughts or attempts.
- Financial loss: Loan app harassment can result in paying more than what you borrowed, losing your assets or income or falling into a debt trap.
- Social Shame: Loan harassment can damage your reputation, relationships and dignity as well as expose you to ridicule, humiliation or isolation.
- Legal trouble: Loan harassment can violate your rights, laws and rules as well as expose you to litigation, penalties or imprisonment.
Causes of Loan App Harassment
There are various factors that lead to loan app harassment, such as:
- Unregulated Loan Providers: Some loan apps operate without proper registration, license or regulation and do not follow the guidelines or norms of the RBI. They may charge very high interest rates, fees or penalties. They impose unfair terms and conditions on the borrowers.
- Data breach: Some loan apps may demand access to your personal or financial data such as contacts, photos, bank account etc and use it for malicious purposes like identity theft, fraud or blackmail. They may also leak or sell your data to third parties without your consent or knowledge.
- Lack of awareness: Some borrowers may not be aware of the risks or consequences of applying for a loan online or may not read or understand the terms and conditions of the loan. They may also not know their rights or remedies in case of loan app harassment.
Effects of Loan App Harassment
As mentioned earlier loan app harassment can have negative impacts on the borrower’s life.
- Mental stress: Loan app harassment can affect your mental health and well-being and cause various psychological problems, like anxiety, fear, panic, anger, frustration, shame, guilt, depression and even suicidal thoughts or attempts. According to a report by the Indian Express, at least many people have committed suicide due to loan app harassment in India since December 2020.
- Financial loss: Loan app harassment can affect your financial situation and stability and cause various economic problems. You pay more than what you borrowed, losing your assets, income or falling into a debt trap. According to a report by the Times of India some loan apps charge interest rates as high as 365% per annum and some borrowers end up paying up to 10 times the principal amount.
- Social Shame: Loan app harassment can affect your social status and reputation, and cause various interpersonal problems, such as damaging your relationships, dignity, and privacy, as well as exposing you to ridicule, humiliation, or isolation. According to a report by the Hindustan Times, some loan apps post the details or photos of the defaulting borrowers on social media or public platforms and tag their friends, family or colleagues.
- Legal Trouble: Loan app harassment can affect your legal rights and obligations and cause various legal problems, such as violating your rights, laws, and rules, as well as exposing you to litigation, penalties, or imprisonment. According to a report by the Economic Times, some loan apps file false or frivolous cases against the borrowers, such as cheating, fraud, or extortion.
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Solutions to Loan App Harassment
If you are facing loan app harassments, you can take the following steps to stop it:
- Block the app: The first and foremost step is to block the app from your phone and delete it. You can also block the calls, messages, emails or social media accounts of the app or the recovery agent. This will prevent them from contacting you or your contacts further.
- Report the harassment: The next step is to report the harassment to the police, cyber cell, RBI or the consumer forum. You can file a complaint online or offline and provide the details and evidence of the harassment with screenshots, recordings, receipts etc. You can also seek the help of a lawyer or a legal aid organization to file the complaint.
- Seek legal help: The third step is to seek legal help to protect your rights and interests and to get relief or compensation for the harassment. You can send a legal notice to the app or the recovery agent demanding them to stop the harassment and compensate for the damages. You can also file a civil suit or a consumer case against them for breach of contract, defamation, invasion of privacy etc. You can also seek an injunction or a restraining order from the court to prevent them from contacting you or your contacts further.
Prevention of Loan App Harassment
To avoid loan app harassment in the future, you can follow these tips:
- Check the credibility: Before applying for a loan online you should check the credibility and reputation of the app or the lender by reading reviews, ratings, feedback etc. You should also verify their registration, license or regulation and ensure that they follow the guidelines or norms of the RBI.
- Read the fine print: Before accepting the loan offer you should read the terms and conditions of the loan carefully and understand the interest rate, repayment schedule, penalties etc. You should also ask for a written agreement or confirmation and keep a copy of it for future reference.
- Compare loan offers: Before choosing a loan offer you should compare different loan offers from various sources such as banks, NBFCs, P2P platforms etc. You should also use loan decoding tools to calculate the monthly payments, total interest and loan amortization for different loan types.
- Borrow responsibly: Before borrowing money online you should borrow only what you need and what you can afford to repay on time. You should also plan your budget and savings and avoid unnecessary or impulsive spending. You should also avoid taking multiple loans or rolling over your loans, as it can lead to a debt trap.
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Conclusion
Loan app harassment is a serious problem that affects many borrowers in India. It can cause mental stress, financial loss, social shame, legal trouble and even suicide. In this article we have explained what is loan apps harassment why it is a serious problem. We have also described the causes and effects of loan app harassment and provided practical and actionable advice on how to stop loan app harassment. Finally we have given tips on how to avoid loan app harassment in the future.
FAQ
Q.1 What is loan app harassment?
Loan app harassment refers to abusive or threatening behavior by certain loan apps or their recovery agents towards borrowers. It can manifest in various forms, including calls, messages, abusive language, threats, blackmail, and more.
Q.2 Why is loan app harassment a serious problem?
Loan app harassment can have severe consequences, such as causing mental stress, financial loss, social shame, and even legal trouble for borrowers. It’s a critical issue that affects many individuals in India.
Q.3 What causes loan app harassment?
Loan app harassment can result from unregulated loan providers, data breaches, and a lack of awareness among borrowers. Some loan apps operate without proper registration and may misuse borrowers’ personal and financial data.
Q.4 How can I stop loan app harassment?
You can take several steps to stop loan app harassment, including blocking the app, reporting the harassment to authorities, and seeking legal assistance to protect your rights and interests.
Q5. What can I do to prevent loan app harassment in the future?
To avoid loan app harassment in the future, you should check the credibility of the loan app or lender, read and understand the terms and conditions before accepting a loan, compare loan offers, and borrow responsibly within your means.