Rent-to-own retailer, BrightHouse who operate a store in Telford could be on the brink of collapse, following an increase in mis-selling compensation claims. SkyNews suggests that administrators have been put on standby should the troubled firm go bust. BrightHouse offers household essentials and loans on weekly repayments, often targeting low-earners who may be turned away by mainstream lenders.
The Financial Conduct Authority has called for BrightHouse to repay nearly 250,000 customers for failing to act as a “Ëœresponsible lender’ and mis-selling claims are costing BrightHouse a reported £1 million each month. BrightHouse lets customers pay for household items such as washing machines and televisions on a weekly basis, but it has been heavily criticised for the way it operates.
The Financial Conduct Authority found that customers ended up paying more than £1,500 for ovens that sell in other high street shops for less than £300. Many people feel they have no other options available to them when it comes to replacing essential items such as cookers. However, for people who live or work in Shropshire and Telford & Wrekin, Just Credit Union provides ethical small affordable loans.
Just Credit Union makes sure the loan is affordable and then people are free to shop around for the best deal available on the items they need. There is also no pressure to take out expensive warranties and insurance, BrightHouse had been criticised for not only charging high prices for goods and high interest rates, but also for selling high cost extended warranties and insurance policies.
