SECP warns public to avoid unauthorized lending apps

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has warned the public of falling prey to the unauthorised lending apps, ‘MoneyBox’ and ‘MoneyClub’, a statement said on Tuesday.

The commission observed that the apps are using the names of licensed Non-Banking Finance Companies (NBFCs) to gain public confidence in offering lending services without any regulatory approval.

The SECP has not granted any permission to its licensed NBFCs, QistBazaar (Pvt) Limited and QistPay BNPL (Private) Limited, to launch the apps, ‘MoneyBox’ and ‘MoneyClub’, respectively.

No licensed entity has approached the SECP, seeking permission to launch apps with these names. This unauthorised activity poses a serious threat to the public, as these apps have been operating without regulatory approval.

The commission maintains a publicly available list of licensed NBFCs and digital lending apps that have the permission to offer lending services.

The public is encouraged to verify the regulatory status of any NBFC and its authorised app before transacting any business with a lending entity.

The SECP is acting to protect consumers and promote fairness and transparency in the financial services industry. It is notifying the law-enforcement agencies to take legal action against the operators of these apps.

The commission has advised the public to only use authorised apps offered by the entities licensed to operate in Pakistan.

The complaints or evidence against companies involved in the unauthorised activities and illegal lending can be sent to [email protected].

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