Caernarfon Herald

BrightHous­e told to pay up millions in compensati­on

- Kelly Williams

HUNDREDS OF thousands of BrightHous­e customers could be owed compensati­on after the financial watchdog found that it did not act as a “responsibl­e lender”.

The rent-to-own firm, which has stores in Bangor, Rhyl, Colwyn Bay and Wrexham, has agreed to to pay out £14.8m in redress to 249,000 customers as a result.

Compensati­on is linked to 384,000 customer lending agreements which “may not have been affordable” and payments “which should have been refunded”, the Financial Conduct Authority (FCA) said.

BrightHous­e, which provides household goods to customers on hire purchase agreements, has been working with the FCA since 2014 after the watchdog identified the firm’s lending assessment and collection­s processes fell short of its expectatio­ns.

The FCA said that group “did not always deliver good outcomes for customers, particular­ly those who were at a higher risk of falling into financial difficulty”.

BrightHous­e has “identified customers that may have been treated unfairly” and has committed to “putting things right” for those customers.

Where it is determined that customers were not assessed properly at the outset of the loan and may have had difficulty making payments, and provided they handed back the goods, BrightHous­e will pay back the interest and fees charged under the agreement, plus compensato­ry interest of 8%.

Customers who retained the goods will have their balances written off.

This part of the redress totals around £10.1m for 114,000 agreements entered into between April 1, 2014, and September 30, 2016, covering 81,000 customers.

Those customers who made the first payment due under an agreement with the firm which was cancelled prior to the delivery of the goods will be refunded by BrightHous­e, plus compensato­ry interest of 8%.

This redress totals around £4.7 million for 270,000 agreements entered into after April 1, 2010, covering 181,000 customers.

BrightHous­e will write to all affected customers, some of whom are affected by both sets of circumstan­ces, to explain the refund or balance adjustment they will receive.

The FCA said BrightHous­e has worked to improve its lending applicatio­n assessment to ensure loans are affordable and customers are treated fairly.

Jonathan Davidson, executive director of supervisio­n at the FCA, said: “During the time in question, BrightHous­e was not a responsibl­e lender and failed to meet our expectatio­ns of firms in this sector.

“I am pleased that it has agreed to provide redress to those customers affected by these historic practices.

“This scheme continues our work with the rent-to-own sector to resolve the concerns we have previously identified. Responsibl­e lending and the fair treatment of consumers, especially those in financial difficulti­es or who are vulnerable, are key priorities for us.”

 ??  ?? ● BrightHous­e has several stores across North Wales
● BrightHous­e has several stores across North Wales

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