Silicon Valley-Backed App Lenders Use Phone Data to Hassle Borrowers
Monday, December 2, 2019
NEW DELHI—Silicon Valley venture capital is funding a wave of fintech startups in India that use data from borrowers’ cellphones to collect on debts in ways that are illegal in both India and the U.S.
The startups are providing much-needed credit in India, where consumer lending has been limited by a lack of credit scores and by banks that are reluctant to make personal loans. While the newcomers’ tactics are illegal, they are ignored by Indian regulators who want to encourage lending, according to analysts and company insiders.