The suicide of an unemployed man Mohamm Masood, 42, in Rawalpindi – due to ‘threats’ made by loan apps for failing to pay back Rs800,000 in debts, has shattered the Pakistanis’ trust in online Apps.
Here is the story of Ali (withheld his full name due to security reasons) who also was a victim of Loan Apps, widely advertise on social media to lure innocent customers.
I’d like to share my personal story of how I also became a victim of loan apps, especially now that their deceptive practices have been exposed.
About four months ago, shortly after graduating from university, I found myself in a situation where I needed money for unavoidable reasons. I decided to take a loan of 10k from a loan app, but little did I know that they charged exorbitant interest rates. As I tried to save some money for repayment, the amount I owed doubled due to the high interest.
Being from a middle-class background, I found it difficult to pay off the full amount. In my desperation, I ended up taking loans from multiple apps to pay off one another, creating a vicious cycle. Before I knew it, I had accumulated around 50k in debt from various loan apps.
Realizing the seriousness of the situation, I made the decision to pay off all my debts using the income from a job I had secured. Thankfully, I was selected for a job and was set to join in August.
From my own experience, I want to offer some advice to students: please avoid falling into the trap of these loan apps. They may seem like a quick solution, but they can make your life miserable in the long run. Recent events have shed light on the harmful practices of these apps, and authorities are taking action.
The Cybercrime Wing of the Federal Investigation Agency (FIA) has reported the arrest of nine suspects and the booking of 19 others for allegedly blackmailing citizens through loan-giving mobile applications. This development follows an investigation launched by the agency into the tragic death of a man in Rawalpindi, who took his own life due to threats made by loan apps regarding his inability to repay the rapidly increasing interest on his debts.
In a proactive move, the FIA conducted raids in Rawalpindi, resulting in the arrest of nine suspects. Additionally, the first information reports have been registered against 19 individuals. The agency also sealed two offices of a loan app located in the G-8 sector and confiscated relevant evidence such as laptops and other materials.
It is crucial to raise awareness about the dangers of these loan apps and take action against those engaging in illegal practices.
