How CAs Help Instant Money Lending Companies Handle Dodgy Business
Bengaluru Additional Police Commissioner Raman Gupta has alleged that the role of finance professionals is shady in the operation of such instant loan apps on mobile phones, according to a PTI report.
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“There is a major role of chartered accountants and company secretaries and these finance professionals in setting up such instant money lending companies. They become directors and appoint someone else as operator” , Gupta told PTI.
Gupta who had investigated the questionable companies of some of these mobile applications even agrees with the idea of blacklisting these financial professionals.
“Apps are developed in India and there are many software engineers here to develop them, but the brain behind this business model is Chinese,” he said.
Another expert said that these platforms at the time of downloading the application have access to phone calls, photos and videos, which are used to blackmail borrowers.
“In some cases, these digital lending apps are making a profit of up to 2,100%,” he said.
According to Gupta, these lenders hardly hire any debt collectors as they use the photographs, videos and contacts to blackmail people into coughing up the amount.