NPC orders takedown of 4 online lending apps

MANILA, Philippines — The National Privacy Commission (NPC) has ordered the immediate takedown of online lending apps JuanHand, Pesopop, CashJeep and Lemon Loan over complaints of unauthorized use of borrowers’ personal information.

In a statement, the NPC said orders were issued to Wefund Lending Corp., Joywin Lending Investor Inc., Cash8 Lending Corp. and Populus Lending Corp. or the respective operators of Juan Hand, Lemon Loan, CashJeep and Pesopop, to stop processing borrowers’ personal data.

Copies of the orders were also provided to the National Telecommunications Commission (NTC) and Google LLC for the removal of the apps on the internet and Google Play Store.

NPC issued the orders based on the findings of its Complaints and Investigation Division (CID) of violations of the principles of transparency, legitimate purpose, and proportionality in the Data Privacy Act of 2012 and the NPC Circular 20-01 on the Processing of Personal Data for Loan-Related Transactions.

“These online lending apps raised many red flags and the companies operating these apps demonstrate problematic data actions that expose borrowers to serious privacy risks and harms,” Privacy Commissioner Raymund Liboro said.

The NPC said the apps have been the subject of various complaints of unauthorized use of personal data that resulted in harassment and shaming of borrowers.

It also said the apps have gained access to information on the borrower’s mobile device including contacts and social media which may be used to harass delinquent borrowers.

Companies behind the apps were given an opportunity to reply to NPC’s findings, but two did not file position papers and the others failed to convince the commission not to proceed with the ban.

NPC said the ban on the four lending apps would be in effect until lifted.

The commission is also conducting a probe on possible criminal liabilities of the directors, officers, and agents of the lending apps’ operators.

Citing Google statistics, NPC said JuanHand has been downloaded over one million times; Lemon Loan and Pesopop by more than 500,000 times each; and CashJeep by over 100,000 times.

More than 200 online lending apps are being investigated by the NPC and action would be taken based on the results.

In October 2019, the NPC already issued a ban against 26 online lending apps for failure to appear before the commission and to respond to allegations on the use of personal data to shame delinquent borrowers.

Through NPC’s coordination with the NTC and Google, the 26 online lending apps were taken down and may no longer be downloaded or used.

To immediately execute orders, the NPC recently opened a channel with Google’s regional office.