Payday loan firms offering customers up to £1,000 if they convince friends to lend cash with huge interest rates

November 25, 2017 No Comments

But consumer watchdogs have blasted companies such as Amigo Loans and BrightHouse for the ‘unethical’ practice.

Lenders are offering customers cash to lure friends and family onto their books.

High-interest firms such as Amigo Loans and BrightHouse have been blasted over the practice.

Consumer watchdogs say the incentives are “cynical”.

Amigo customers can earn up to £1,000 if they get a friend to take out a £10,000 loan at an annual interest rate of 49.9 per cent.

Rent-to-own retailer BrightHouse, with rates up to 99.9 per cent, offers £220 to introduce a pal.

Doorstep lender Provident will pay clients £30 if a friend borrows £100 or more at 535 per cent, while Loans At Home hands over £20 at 433 per cent.

Recent Bank of England figures show households have unsecured debts of £204billion.

Marc Gander of Consumer Action Group said the schemes were “bound to attract people”.

Martyn James, of complaints site resolver.co.uk, added: “We’ve serious concerns about the ethics.”

BrightHouse said it was common practice among retailers.
Loans At Home said it was “happy to offer a small reward” for customer referrals.

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