In Rawalpindi, a distressing incident occurred. A 42-year-old resident tragically took his own life due to relentless harassment and threats from representatives of digital lending apps.
Mounting Debt and Alarming Threats
The victim faced financial difficulties after losing his job. Initially, he borrowed around Rs. 13,000 to cover house rent and their children’s school fees. Within a few weeks, alarming threats emerged.
Pressure, Loans, and Financial Burden
Under constant pressure, the victim found himself trapped in a cycle of escalating threats. Desperate to repay the initial loan, he turned to another digital lending app, further worsening his financial burden.
Blackmail and Tragic Consequences
The situation took a darker turn as the victim endured threats of leaking his personal mobile phone data, including contacts, pictures, and videos. Failure to repay the loan with exorbitant interest would potentially expose his private information.
Regulatory Measures and Public Awareness
To address such incidents, the Securities and Exchange Commission of Pakistan (SECP) advised borrowers to carefully review loan terms and conditions provided by digital apps. This includes understanding interest rates, service fees, and penalties for late payments.
Warning Signs and Public Caution
The Competition Commission of Pakistan (CCP) issued a warning to the general public about the growing trend of mobile app-based micro-credit and nano-loan facilities. It serves as a reminder for individuals to exercise caution and awareness when engaging with these lending platforms.
Complaints and Tragic First
Complaints regarding harassment by digital loan apps are unfortunately not uncommon. Stories circulate on social media platforms, shedding light on the tactics employed by these apps, including threats and blackmail. However, the recent tragic incident in Pakistan marks a distressing first where a victim of these loan apps resorted to suicide due to alleged harassment and blackmail by exploitative lenders.
