Lenders’ £1K family bribe’ to get you in debt Relatives used to tempt borr owers

HIGH-INTEREST lenders are offering customers up to £1,000 to lure others into debt.

Firms including Amigo Loans and BrightHouse have been blasted over ‘incentives’ s chemes as household debt soars.

Consumer watchdogs said they were a “cynical” attempt to ramp up profits.

Amigo customers can earn a cash reward of up £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, which charges up to 99.9 per cent on “luxury” products, offers £220 to introduce a friend.

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

Recent Bank of England figures show households have unsecured debts of £204billion. Marc Gander of the Consumer Action Group said: “This type of initiative is bound to attract people.” Martyn James, of complaints site resolver.co.uk added: “We’ve s erious concerns about the ethics of these offers – and we’re sure the regulator will have too.”

Amigo insisted only a “tiny percentage” of loans were driven through the ‘recommend a friend’ scheme.

BrightHouse said introducing a friend was common practice among retailers.

Loans At Home said it was “happy to offer a small reward” for customer referrals “to grow our business”.