Yesterday, Karnataka Police’s CID caught two leading officials, of an “instant mobile loan app” company who were reportedly irritating their customers over non-payment of loans.
As per the report, the CID charged four companies — Mad Elephant Technologies Private Ltd, Borayanxy Technologies Private Ltd, Profitise Private Ltd and Wizzpro Solutions Private Ltd — after they drew complaints of “harassment” from customers who were charged a huge 36 percent interest on hand loan amounting Rs9,000 (Dh450) to Rs15,000 (Dh750) for a period of a week or two weeks.
The CID said, “The modus operandi of these companies was quite similar — they used to hack mobile phones of their defaulters and create WhatsApp group comprising of customers’ relatives and friends to defame the customers by sharing their photographs with tags such as ‘Chor’, ‘defaulter’, ‘fraud’ and ‘420’.”
The CID further said, “Besides this, these company agents used to force these defaulters to again take loan from some other similar mobile loan apps and thus get them into a debt trap. ”The officer said, “Most of these apps are cloud-based systems which are accessed and monitored by neighboring countries (China).”