Speedy Cash Promotes ‘Bonus’ To Encourage Customers To Refer New Customers To The Lender
Image: Daily Mirror)
A payday lender is offering £ 20 to troubled customers to train their friends to go into debt with them.
Speedy Cash promotes the “bonus” as an incentive for clients to refer new clients to the lender – just as struggling families turn to emergency loans as Christmas approaches.
In-store posters and flyers urging customers, “Send friends. Earn cash rewards, ”adding:“ For every friend you send to Speedy Cash we’ll give you £ 20. “
They show a person next to £ 20, two with £ 40, three by £ 60 with the words, “And so on. You got the idea. “
Desperate clients are hit with a representative APR of 2,115.69% on 30-day loans taken out.
Activists criticized the friend-referral program.
Stephen Sichel of London Citizens said: “It inspires people to exploit their relationships and get into debt with friends.
“People who feel the pressure this Christmas need support, not encouragement in cycles of debt. They exploit people’s vulnerability.
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Labor MP Paul Blomfield, who has campaigned for a crackdown on payday loans, said: ‘This is a nasty ploy. We have made huge strides in regulating this scam industry, but shameful tactics like this point to the need for strict oversight.
“Payday lenders are always looking for new ways to get people into debt. “
Speedy Cash, which has 23 branches in England and Wales, has come under fire from regulators for last Christmas ads offering children free photos with Santa Claus in store.
The company did not respond to requests for comment.