Need new electrical or home goods but can’t free up the funds to buy them?
Recently the rent to own firm BrightHouse who allows individuals in the UK to have home goods on hire purchase who cannot buy these goods there and then have come under some pressure to be more regulated as they are charging consumers well over the odds to pay off items on a weekly basis.
The controversial retailer allows consumers to purchase home goods and pay them back in weekly instalments with interest rates of up to 99%. Citizens advice have recently criticised this industry as they are seeing a massive increase of individuals with debt worries due to the repayments to their home goods and just like the payday loan cap in 2015, Citizens advice would like to see a cap on the interest rent to own companies can charge and also would like to see a big step up in affordability checks to ensure they are doing everything in their power to ensure the consumer can afford to take on those goods without a struggle. BrightHouse are looking to work with the Financial Conduct Authority to make sure they are in line with the guidelines to ensure best practise is in place when lending to individuals.
BrightHouse is not the only big player in the rent to own market as you get other big names on the high street such as;
Buy As You View
Dial A TV
Home Buy Group
Fair For You
UK Home Maker
Pay Weekly Electricals
Shortly we do expect these type of companies to start clamping down on who the borrow to with extra checks such as proof of income, income and expenditure checks to prove affordability.
If this is something that is effecting you or someone you know that are struggling due to lengthy high repayments for goods get in touch!
Do you have over £5000 of unsecured debts? Why not look into a Scottish Protected Trust Deed and write off up to 75% of your debt using government legislation.