Payday loan companies offering clients up to £ 1,000 if they convince friends to lend money with huge interest rates


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

BrightHouse high interest loan company is offering £ 220 if people introduce friends and family

Lenders offer clients money to attract friends and family to their books.

High interest rate companies such as Amigo Loans and BrightHouse have been criticized for the practice.

Consumer watchdogs say the incentives are “cynical.”

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

Amigo loan clients can get up to £ 1,000 if they can ask a friend to take out a loan of £ 10,000

Hire-purchase retailer BrightHouse, with rates up to 99.9%, is offering £ 220 to introduce a friend.

Door-to-Door Lender Provident will pay customers £ 30 if a friend borrows £ 100 or more at 535%, while Loans At Home will remit £ 20 at 433%.

Martyn James said he had “serious ethical concerns”

Recent figures from the Bank of England show households have £ 204 billion in unsecured debt.

Marc Gander of the Consumer Action Group said the programs were “meant to attract people.”

Martyn James of claims site added: “We have serious ethical concerns.

Amigo insisted that only a “tiny percentage” of loans were funded by his program.

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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