In a massive regulatory crackdown aimed at protecting citizens from financial extortion and digital harassment, the Securities and Exchange Commission of Pakistan (SECP) has expedited its actions against predatory digital lending platforms. Following the explicit legal directives issued by the Islamabad High Court, mainstream applications like ‘Barwaqt’ (operated by Seedcred Financial Services) and ‘UdharPaisa’ (operated by Microcred Financial Services) have been officially delisted and placed under formal court-supervised liquidation.
This critical regulatory move brings a massive sigh of relief to millions of borrowers caught in vicious debt traps, but it also underscores an urgent need for consumers to actively protect their personal mobile data.
The SECP Warning and Fake Credit Fixers
The regulatory body has issued an urgent public alert clarifying that ‘Barwaqt’ was delisted for major compliance violations and its license stands cancelled. However, the SECP has observed a rise in fraudulent entities operating on social media platforms (such as Facebook and WhatsApp). These scammers are falsely claiming they can clear a borrower’s default status from the Electronic Credit Information Bureau (eCIB) in exchange for direct cash payments.
According to the official SECP Pakistan Website, under the Credit Bureau Act of 2015, eCIB records can only be updated and amended through authorized financial member institutions. Citizens are strongly advised never to pay any unauthorized third party for debt settlements.
How Affected Users Can Clear Their eCIB Defaulter Record legally
If you are a borrower of these defunct illegal loan apps and your name is currently reflecting as a defaulter on credit registries, you must follow the strict court-mandated settlement protocol:
- Direct Bank Branch Deposits Only: All pending loan settlements must be paid physically via specific, official bank branches assigned by the court liquidator. Digital wallet transfers (like EasyPaisa or JazzCash) or payments through any third-party links are strictly prohibited and legally invalid.
- Explicit Slip Identification: While depositing the cash, ensure your complete name, CNIC number, and purpose of payment are clearly documented on the deposit slip. Retain the stamped bank receipt as vital legal proof.
- Submit Verification to the Liquidator: Email a clean scanned copy of the payment slip alongside your CNIC to the official SECP-appointed liquidator. The processing team will formally update and clear your credit profile within 4 weeks.
Step-by-Step Guide to Protect Your Phone Data from Harassment
Users install questionable or untrusted illicit loan apps and the apps steal access to user contact and photo collections, as well as real-time GPS data. To preserve your digital footprint, follow these security tips:
Check on the SECP Whitelist: Cross check with SECP Approved Lending Apps Whitelist, which is updated regularly.
Check App Permissions: In your phone’s settings, select app management and revoke any suspicious apps’ permissions for gallery, microphone and contact book as soon as you see them.
Steer clear of Rogue APK Links: Rogue developers often find to share the banned apps through third-party websites or direct WhatsApp APK download links. Do not download installation files from unofficial sites.
If you find yourself under an active blackmail, threats or defamation from an unregulated digital lender, file a cyber-harassment complaint with the FIA Cyber Crime Wing, under the Prevention of Electronic Crimes Act (PECA) 2016, as soon as possible.
