BrightHouse enable customers to purchase household items and pay for them on a weekly basis. Many customers were charged a high interest rate and an example has been given of a £358 washing machine ended up costing over £1,000.
The Financial Conduct Authority has ordered BrightHouse to credit over 249,000 customers at a cost of 14.8m due to its findings that BrightHouse had not been a responsible lender.
The Financial Conduct Authority found that BrightHouse had failed to assess 81,000 customers on whether they had the ability to repay their loan. As a result many customers had been forced to hand back the goods as they were unable to keep up with the repayments. These customers will now be repaid and will receive the interest and fees charged as well as a compensatory interest payment of 8%.
Customers that kept the goods will now have the ownership of the goods transferred to them and will receive a compensatory interest of 8% if the customer was not properly assessed.
Customers who cancelled agreements after the first down payment, within the 14 day cooling off period but didn’t receive a refund will also now receive a refund.
The company will now write to 213,000 past and current customers to set out payments due. However, if details have changed then it may be worth contacting BrightHouse to inform them of the change of details.