Legalpay launches ‘Debt Defence’ to protect individuals from Chinese loan app frauds

Bengaluru, 8 July: LegalPay, a litigation financing company focused on businesses, has launched a new plan ‘Debt Defence, which is designed to provide premium services to retail consumers grappling with daunting debt recovery and collection lawsuits.

The company said in a release that in response to the alarming proliferation of predatory practices employed by Chinese loan apps, which target vulnerable consumers with exorbitant interest rates and unethical recovery tactics, LegalPay has launched this new product in order to safeguard consumer rights.

According to the company, this platform ensures swift and legally binding resolutions, that help individuals to reclaim financial stability.

“Financial hardships can have a devastating impact on individuals and families. Our mission is to stand alongside individuals during their most challenging times, providing comprehensive support for all debt-related challenges. At LegalPay, we're reshaping the landscape of debt resolution. Our Debt Defence plan is dedicated to delivering expert legal support and ensuring justice is accessible to all facing overwhelming debt,” Kundan Shahi, Founder of LegalPay said.

The company also said that it will provide support and expert legal guidance to subscribers and help them gain access to seasoned legal advisors and advanced tech-enabled platforms, facilitating efficient and effective service delivery.

Many gullible retail investors have been trapped by several lending apps run by Chinese operators in recent years. These individuals have been harassed by collection agents to pay up exorbitant interest rates.

Earlier, the finance ministry informed the Parliament that Google had suspended or removed more than 2,200 loan apps from its Play Store between September 2022 and August 2023.