Rawalpindi resident takes his life after being harassed by loan apps

In a heart-wrenching incident, a 42-year-old resident of Rawalpindi ended his life after being subjected to relentless harassment and threats from representatives of digital lending apps.

According to the deceased’s wife, her husband initially borrowed approximately Rs. 13,000 to cover the expenses of house rent and school fees for their children after losing his job. However, things took a dark turn within weeks as he started receiving menacing threats.

The woman revealed that her husband was coerced into repaying a significantly higher amount and was constantly hounded by threats. Desperate to settle his debt, the deceased resorted to taking another loan from a different digital lending app, only to find himself trapped in a vicious cycle of mounting interest.

Shockingly, the deceased was allegedly blackmailed with the threat of leaking his personal data, including contact details, photos, and videos, if he failed to repay the loan along with exorbitant interest.

Unable to bear the constant threats and blackmail inflicted by these digital lending apps, the man tragically took his own life. The Race Course police have initiated an investigation into the matter and have registered a case.

Earlier this year, the Securities and Exchange Commission of Pakistan (SECP) urged borrowers to thoroughly review all terms and conditions, including interest rates, service fees, and penalties, before engaging with digital loan apps.

In May, the Competition Commission of Pakistan (CCP) issued a warning to the public regarding the growing trend of mobile app-based micro-credit and nano-loan facilities.

Instances of harassment by digital loan apps are unfortunately not uncommon, with numerous accounts shared on social media platforms detailing threats and blackmail tactics employed by these lenders. However, this tragic incident marks a distressing first in Pakistan, where a victim of such loan apps resorted to suicide due to alleged harassment and blackmail perpetrated by these predatory lenders.

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Topics #featured #Pakistan