FIA arrests six more over predatory lending

The cybercrime crime of the Federal Investigation Agency (FIA) in Islamabad detained six more individuals in connection with predatory lending practices of online lending applications (apps) that allegedly resulted in the suicide of one borrower.

The latest arrest follows raids on the offices of at least two such lending apps – Easy Loan and Bharosa app – with at least nine employees of one of those apps arrested in connection with the suicide.

The latest arrests include employees of apps identified as Gateway Games, Jacob.com, DropZone and Corniche Communications. According to investigators, the four companies did not have the approval of the Securities & Exchange Commission of Pakistan (SECP) required by non-banking finance companies (NBFC).

Authorities said they had seized 20 mobile phones and ten laptops from the office used by the accused. Those arrested included Muhammad Umer, Khurram Abbas, Syed Ali Noor, Mushahid Anwar, Ameer Jalil, and Talha Ahmed, who were allegedly using these apps to extort money via blackmail.

FIA plea rejected

A special court in Rawalpindi on Thursday turned down a plea of the Federal Investigation Agency (FIA) to extend the physical remand of nine suspects in the case of the man who died by suicide after allegedly failing to repay the loan taken from a digital lender.

Judicial magistrate Mujtaba ul Hassan sent the nine employees of the online loan app on 14-day judicial remand while ordering the investigating officer (IO) to present the challan of the case at the next hearing.

Meanwhile, the nine accused have failed bail pleas on which the court has issued notices to the investigation team. The nine people arrested and accused of using predatory tactics to threaten and blackmail borrowers include Muaz Talib, Muhammad Bilal, Hasnain Sadaqat, Kashan Bashir, Abdullah Waheed, Muhammad Ahmar, Iftikhar Ahmed, Iftikhar Raza and Haziq Abbasi.

They were arrested following an outcry over the death by suicide of a father of two in Rawalpindi, whose initial loan of Rs13,000 ballooned into a debt of over Rs700,000. According to the family, the man took his own life after employees of the lending app threatened him. The employees of the lending app are also accused of calling the family and friends of the borrowers after gaining access to their phone data.

The IO told the court that they had traced the calls made by the accused, who had also ‘confessed to the crime’. They sought more time from the court to get further information data from the accused in light of the ‘manifold complaints filed by citizens’ against these lending apps.

The accused were in FIA custody for six days after which the agency sough an extension. However, the court turned it down and sent the accused to Adiala Jail for a fortnight.

Meanwhile, sources privy to the investigation said that the police had failed to find any incriminating evidence, with at least source saying that the investigators were trying to ‘accommodate’ the accused.

Meanwhile, the cybercrime circle, which is conducting the investigation, said they had received 40 complaints from victims of such online lending apps. They said they had initiated action on nine applications, which implicate five apps. They said they expected to seal more offices and conduct more arrests in the coming week.

Published in The Express Tribune, July 21^st, 2023.