You may have seen a deluge of loan apps on the Play Store and they have become quite popular since they offer easy credit to people out there.
Well, Google wants to crack the whip on predatory loan apps on the Play Store with new guidelines that they updated recently.
Google will not allow apps that “expose users to deceptive or harmful financial products and services.” These “financial products” in question relate to the management or investment of money and cryptocurrencies that includes personalized advice.
Google wants apps that are promoting financial products and services to comply with state and local regulations where the app targets.
The company also said that they do not allow apps that “promote personal loans that require repayment in full in 60 days or less from the date the loan was issued.” This affects a lot of loan apps on the Play Store and could spell doom for them. In US for example, Google will not allow apps with personal loans where the annual percentage rate (APR) is 36% or higher
Instead, Google has laid the requirements for apps for personal loans in their metadata.
- It should have a minimum and maximum period of repayment
- Maximum annual percentage rate (APR) which generally include interest rate plus fees and other costs for a year, or similar other rate calculated consistently with local law.
- An example of the total cost of the loan, including all applicable fees.
Google will also not allow apps that trade binary options or apps that mine cryptocurrency on devices. However, they permit apps that remotely manage mining of cryptocurrency.
Google has apparently sent emails to all fintech companies and have given them 30 days to comply with the new policy.
These new policies by Google will impact a lot of fintech companies who have flooded the Store with loan apps. This could mean they would have to look for new homes or adjust their rates accordingly based on local law and Google’s policies to be left running on the Play Store.