Sunday People

Sofa rental deal could be Brighter’

- By Stephen Hayward and Dominik Lemanski

SHOPPERS who were talked into credit deals they could not afford by rent-toown firm BrightHous­e are being hit again because its compensati­on awards are “inad equate”, anti- debt campaigner­s claim.

The firm, which sells electrical­s and furniture, is paying back £10.1million to 81,000 customers whose inability to pay was ignored.

It is accused of targeting low-income families with sky- high l oan costs – charging an annual interest rate of up to 69.9 per cent.

A £358 washing machine typically ended up costing more than £1,000.

Yet t he promised compensati­on is on average less than £125 per person.

The firm is paying a further £4.7million to 181,000 customers who cancelled before the goods arrived but who were still charged.

It follows a probe by watchdog the FCA.

Damon Gibbons, of the Centre for Responsibl­e Credit, said: “The package is woefully inadequate for the damage caused.”

Labour MP Yvonne Fovargue urged: “The Government should promote safer credit for the most financiall­y excluded.”

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