Personal loan apps which require repayment in full within 60 days from the date of issuance will not be allowed on the Google Play Store, according to its new developer policy. Additionally, apps for personal loans must disclose the following information in the app metadata: Minimum and maximum period for repayment. Maximum Annual Percentage Rate (APR), which includes interest rate plus fees and other costs for a year, or similar other rate calculated consistently with local law. A representative example of the total cost of the loan, including all applicable fees. The policy also mandates that an individual can borrow money from one individual, organization, or entity to only on a nonrecurring basis; also, these loans cannot be used for financing the purchase of a fixed asset or for education. Payday apps with an Annual Percentage Rate (APR) higher than 36% will also not be allowed on the platform in the United States. Apart from that, apps for personal loans in the United States must display their maximum APR, calculated consistently with the Truth in Lending Act (TILA). This policy applies to apps which offer loans directly, lead generators, and those who connect consumers with third-party lenders. Google Play Store also doesn’t allow apps that “expose users to deceptive or harmful financial products and services”. Problems with payday loans apps Payday loans are typically granted to low-income borrowers with bad credit, serving as a quick way to access much-needed cash in a pinch, however, with major strings attached. Predatory lenders…
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