The Securities and Exchange Commission of Pakistan (SECP) has warned the public about falling prey to unauthorized lending apps, namely “MoneyBox” and “MoneyClub”.
The SECP has 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.
SECP has not granted any permission to its licensed NBFCs QistBazaar (Pvt) Limited and QisstPay BNPL (Private) Limited, to launch the apps namely “MoneyBox” and “MoneyClub,” respectively. This unauthorized activity poses a serious threat to the public, as these apps have been operating without regulatory approval.
It is important to note here that QisstPayBNPL (Private) Limited, the company in question, is different from Qisstpay, Jordan Olives, CEO QisstPay told ProPakistani.
The SECP maintains a publicly available list of licensed NBFCs and digital lending apps that have the SECP’s permission to offer lending services. The public is encouraged to verify the regulatory status of any NBFC and its authorized 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 law enforcement agencies to take legal action against the operators of these apps. The SECP advises the public to only use authorized apps offered by entities licensed to operate in Pakistan.
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