Opposition is mounting to pay day lenders, who can sometimes charge interest rates of 400 per cent per annum. The heat is already on pay day lenders with government plans to cap annual interest rates at 48 per cent.

One of Australia's major debt collectors has severed ties with these lenders of last resort. The Prushka debt collection agency says it does not want to be associated with pay day lenders because some often exploit people on Centrelink benefits, knowing they have no capacity to pay money back.

"The reason was a commercial one. We acted for quite a large number of them and upon doing some figures on it, it turned out that it really just was not commercial for us because the recovery rate we achieved was an average of something like 7 per cent and because we're no recovery, no charge, we just cannot make any money out of that," said Prushka's managing director Roger Mendelson.

He says, aside from being unprofitable, collecting pay day lender debts is a bad look.

"We don't want to be involved in acting for clients who may come back to give us a bad name, and we had some concerns about some of the pay day lenders, certainly not all of them, about their practices and particularly the high percentage of fees that comprised the amount of a debt that came to.....Click HERE to read more on the story