How do I know if a loan app is operating illegally?

Check three things: official registry, permissions requested, and repayment terms.

Legitimate loan apps follow rules. Illegal ones break them in predictable ways.

Red Flag 1 – Asks for Contacts or Photos

Google's policy explicitly prohibits personal loan apps from accessing contacts and photos . If an app asks for these permissions, it is violating app store rules and is likely predatory.

Red Flag 2 – Extremely Short Repayment Terms

Google bans loan apps that require repayment in 60 days or less . If an app demands repayment in 7, 14, or 30 days, it is violating policy.

Red Flag 3 – Not on Official Registry

Many countries maintain public lists of approved lenders:

• Nigeria: FCCPC approved digital lenders list
• India: RBI digital lending apps directory
• Kenya: CBK Digital Credit Providers directory
• Philippines: SEC registered lending companies

If an app is not on the registry, it is operating illegally .

Red Flag 4 – No Transparent APR

Legitimate loan apps must clearly display the Annual Percentage Rate (APR), which includes all fees and interest. If an app hides the true cost, be suspicious .

Red Flag 5 – Upfront Fees

If an app demands payment before releasing loan funds, it is a scam. Legitimate lenders deduct fees from the loan amount.

Real Example of Illegal Operation

In the Philippines, the PAOCC launched a major crackdown after receiving over 13,000 complaints in just two months. These illegal apps caused "financial, psychological, and reputational injury" through threats and harassment .

Step-by-Step Protection Guide

Step 1: Check the official registry. If the app is not listed, DO NOT USE IT.

Step 2: Review permissions before installing. If it asks for contacts or photos, cancel installation .

Step 3: Read the repayment terms. If repayment is required in less than 60 days, it is likely predatory.

Step 4: Look for clear APR disclosure. If you cannot find it, do not borrow.

Step 5: Search online for "[app name] scam" or "[app name] illegal." Read what others have experienced.