Digital lender is playing dirty 💳

Digital lender is playing dirty 💳

What’s poppin’ — a digital lending player called Dhani is getting roasted by users as well as regulators for lax monitoring and KYC practices that allowed scammers to create fake identities and get personal loans through the platform!

How shit rolled — the news broke when a bunch of popular Twitter accounts started posting about how they had found queries on their credit reports showing loans that had been taken out in their names, without their knowledge.

Basically, an individual or group of miscreants was using stolen PAN numbers, coupling them with fake names and addresses, to seek credit from Dhani — and their system, without a comprehensive check, would apparently initiate the loan and wire cash to the linked bank account. Money poof!

Things blew up on Twitter with several other users piling the feed with their own horror stories. Moneycontrol says even Sunny Leone found a loan initiated in her name!

Fyi, Dhani was previously Indiabulls Consumer Finance, before it changed dresses to appeal to the digitally-savvy junta. Their Android app has about 5 crore+ downloads on the Play Store, so without a comprehensive audit, its hard to say the extent of this mess.

What now — regulators are investigating. Dhani, meanwhile, claims it has beefed up support staff, slowed the process of initiating new loans, and is dealing with existing volumes on complaints.

Big picture — lowering guardrails in the name of friction-free experiences is giving a bad rep to an entire industry. Better monitoring from regulators seems long overdue.