UK Borrowers Chased for Non-existing Loans

Help Loan, a Finland-based payday loan company that started trading in Great Britain in summer 2010, is accused of chasing debt from Brits who have not borrowed from the lender.

According to estimates, around 5,000 people have been contacted by debt collectors working on behalf of Help Loan, which provides struggling Brits with fast loans of £50-£300 at extremely high rates.

The company as well as its non-existing clients believes that they have become the victims of fraudsters who used personal details of innocent Brits to apply for loans, which totaled to £1.5 million.

Those who have been contacted by the debt recovery firm, Intrum Justitia, are recommended to send them a letter in order to notify Help Loan about the false loan. This move should halt any enforcement action by the lender or the debt collectors while the British police are investigating the matter.

Credit histories of innocent Brits are not expected to be affected because most payday loan companies do not report to the credit bureaux, says Neil Munroe of Equifax.