BrightHouse faces £15m compo bill over high-cost loans scandal
HIRE-PURCHASE firm BrightHouse has been ordered to pay back £15million loaned to customers who struggled with crippling repayments. The high street chain, which sells TVs and other household goods under rent-to-own contracts, failed to carry out proper checks to ensure customers could afford loans, typically 69% interest a year.
It will hand back £14.8million to 249,000 customers who have made purchases since 2010. Those affected will be sent letters.
Jonathan Davidson, of the Financial Conduct Authority, said: “During the time in question, BrightHouse was not a responsible lender and failed to meet our expectations. Responsible lending and the fair treatment of customers, especially those in financial difficulties or vulnerable, are key priorities.”
BrightHouse apologised and said it had made “significant improvements” recently.
LET’S hope the £14.8million that rent-to-own retailer BrightHouse must repay to 249,000 customers will be an expensive warning to predators ripping-off the British public.
Unaffordable deals are a financial nightmare for struggling families and the Financial Conduct Authority must come down on sharks preying on the desperate by selling bad deals.
BrightHouse used high-cost TVs, washing machines, fridges and other household goods to boost its own profits by plunging the unsuspecting into expensive debt.
It almost certainly isn’t alone. We urge the FCA to go after the others.