Why you shouldn't use Banking apps on Android

[TheMystic]

Today, I read a news on how a woman's morphed pics were circulated among some of her contacts, was sent lewd messages, abusive calls, and other types of harassment. And all this for a mere Rs. 3,000 loan she took from some online loan app or something like that. This is just one story. I have read similar stories several times in the past.

That brought me to write this to draw your attention to the much larger malaise of how the Banking and Financial industry harasses non-paying borrowers.

At the outset, let me make this very clear: If you borrow, you MUST pay back. And pay back in time, as per terms of the contract.

Now, if you breach the contract yourself by not paying on time, you are in for a lot of trouble and harassment. There are laws in place to prevent harassment, but I can assure you that lenders know how to exploit loopholes and cause immense harassment and trouble to non-paying borrowers, that has long term implications of tarnishing their image among neighbours, friends and relatives.

This is a huge network of politicians, police, and the lenders themselves. Collection agents are just people working for this nexus. As an ordinary citizen, you have practically just one option if you borrow: pay up. If you don't, they WILL make life hell for you.

As to how this topic is relevant in a forum like this, here is what you need to know:

Banking apps require atleast two permissions for working on an Android phone:

1. Phone: to ensure that the number in use is the registered mobile number. They will also collect other info like your IMEI, device details, etc.

2. SMS: to send an sms automatically for authentication.

But this essentially gives them full access to all your messages on Android, which is actually none of their business. They do it to assist them during litigations. I won't go into too much details, but it would suffice to say that they just have access to information they shouldn't need, and which can be used against you in a court of law.

For downloading statements or anything, they need access to storage. Android has very poor implementation of storage access. I have discussed it here:

How Android File Management should be.... - Samsung Members

Bad idea to allow this permission. If you do, banking apps may upload your pictures to their servers, and use it for morphing purposes to harass you, just as in the example we saw today. You think 'reputed' banks won't do this? If so, you have no idea of reality.

For 'seamless' funds transfer using UPI or other modes of sending money, they may ask for access to contacts. Nice excuse to upload your contacts to their servers, so they can use it to harass you, if required.

Location: To track you. 😂😂

Basically, while there is one good reason for each permission requested, just know that there is always atleast one hidden reason too for each permission. Don't believe me? Borrow and skip a payment. 🤣🤣 You'll wonder where they got this info or that info from!

An iPhone is much better in such matters. Be it SMS, or other permissions, you are better off using an iPhone than an Android phone, by virtue of how each OS is configured and how permissions are handled by them.

How to avoid such nasty activities on an Android phone?

Just use a browser to access internet banking. Keep a browser dedicated for banking activities and clear out all its temp files after each session. An app is much more convenient, but that convenience comes at a price. A very big price if you borrow and don't pay!

Samsung Users can also use Secure Folder or Work Profile, if they don't store their contacts, photos and other private info in those environments. But SMS access is a must and these apps won't work on Android without that permission. So there is still some amount of vulnerability here too!

Additionally, you can also use a UPI based app like GPay or Samsung Pay or PayTM or PhonePay, etc. for normal/ routine payments. These apps are likely to work with just the Phone permission, and anyways they have no interest in harassing you as they are not in the business of lending money.

[TheMystic]

Banks use collection agents for this purpose, which is what helps them keep their image clean, because when things go out of hand, the blame can easily be shifted, without any legal implications.

It is a very well organized network, and tactics empoyed to harass bad accounts depend on the customer profile. **bleep** profies would receive **bleep** treatment pretty soon. 🤣🤣

Such a thing is not possible without political support, which is why it continues to be a malaise, despite several laws and regulations on the matter. To some extent, banks are not 'directly' responsible too for what the collection agents actually do on the ground. But they are still responsible for leaking customer information to these agents, which happens all the time.

And as you said, these small money lending/ easy loan apps go to extremes, and do that too fast. And they don't have the same political clout that large banks enjoy to keep their image clean. Even if they disappear, no one would know.

Do note that by Collection Agents, I'm referring to entities external to the bank that provide recovery services. They do not work for any bank directly, instead they provide recovery services to multiple banks on commission basis. This is different from the Collections Department within each bank.

These recovery agents come into the picture much later, after initial efforts fail. If I were to give an estimate, it would be about 90 days or so of non-payment, when accounts have to be mandatorily classified as 'Doubtful' or even 'Bad Debt'.

[ѵօϲɑӀ4ӀօϲɑӀ]

Ok

[sammybc]

Yes, op should reword title as 'money borrowing / microloan apps'. They make some valid points in post but right now the title is misleading and is FUD territory.

[Avinashkumar11]

Do not do such work which is not completed by you, do the work which can be completed by you, whatever you tell is very good. Attention has also gone to him. The rest is a good thing.But it is a matter of time. Sometimes it is day and sometimes it is night, man has no faith. No one knows when what will happen to whom and how it will happen. Even with money, a person does not accomplish anything.

[URSC]

Primarily these are companies which were setup recently during pandemic and Chinese investors are part of it. RBI have already issued guidelines and have said it aloud to not transact or take money from such unauthorised Apps running on Android platform. Unfortunately, Playstore is one messy place where such malefic actors get entry easily to harass and steal user data.

[Sudhamshu]

This is why one must be prudent in taking loan. If it is a must, get loan from a Public Sector Bank. They do not do such things and there are many rules from RBI and government in place. If they cross line, you can directly take them to court or Ombudsman. These kind of problems come with **bleep** loan apps. Another thing about collection agents. If the bank is licensed by RBI, even if it's private bank, there are certain rules agents have to follow. Not following can directly lead to a case against bank and the punishment can range from heavy penalty to losing license to operate in that area too. So take care where you take loan from and repay on time. If you cannot, do not try to disappear. Go and meet the bank directly and they will sort it out by rescheduling. If you try to disappear, they will take their measures.