Allahabad HC tests whether OTP loan acceptance amounted to informed consent
The court is examining a dispute involving Leverage Edu-linked education loans and whether OTP-based acceptance met informed-consent standards. The case puts digital lending disclosures, cooling-off periods and grievance processes in focus ahead of RBI’s tighter consent and dark-pattern rules from January 2027.
What happened
Allahabad High Court is examining whether OTP-based acceptance via Leverage Edu loan links constituted informed consent. The case spotlights RBI digital-lending
Key facts
- Credit score fell from 900 to 681
- RBI counsel given two weeks to seek instructions
- Cooling-off period of at least one day
- Lender complaint escalation after 30 days
- Rules effective January 1, 2027
Why this matters
Education-finance platforms and lending partners should audit OTP consent flows, strengthen pre-disbursement disclosures and cooling-off options, and document grievance handling before tighter RBI standards arrive in 2027.