Campaigners and MP’s angered by payday loan companies latest Christmas offer
Payday lender Speedy cash, provides loans with a representative APR of around 2,115% has caused outrage by offering hard-up customers £20 to drag friends and family to join them in debt.
The payday lender, which has 23 branches in England and Wales, has history in targeting the vulnerable at Christmas. Only last Christmas Speedy Cash was dragged over the coals by regulators over ads offering children free photos with Santa in store.
Speedy Cash, latest promotion can be found in-store posters and leaflets a “bonus” to existing clients if they refer new customers to the lender. I could be called cynical here but the timing, just before Christmas, suggests they could end up targeting friends and families struggling with their finances.
it may not be illegal, but it is certainly immoral to reward clients with money in return to getting people in the run up to Christmas to turn to emergency loans via high-cost payday loans.
In-store posters and leaflets urge customers: “Send some friends. Earn cash rewards”. Speedy cash also say: “For every friend you send to Speedy Cash, we’ll give you £20.”
The posters and leaflets show one person next to £20, two with £40, three by £60 with the words: “And so forth. You get the idea.”
Stephen Sichel of London Citizens said: “It offers incentives for people to exploit their relationships and get friends into debt.
“People feeling the pressure at Christmas need support, not to be encouraged into cycles of debt. They’re preying on people’s vulnerability.”
Labour MP Paul Blomfield, who has campaigned against payday loans, said: “It’s a nasty ploy. We’ve made enormous progress in regulating this rip-off industry but shameful tactics like this show the need for strong monitoring.
“Payday lenders are always looking for new ways to get people into debt.”