BrightHouse to pay £14.8 MILLION in compensation to 249,000 customers

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Found 24th Oct 2017
2816809-jHmy4.jpg(Via BBC News)

Rent-to-own retailer BrightHouse has been told to pay £14.8m to 249,000 customers by the financial regulator, the Financial Conduct Authority (FCA).

BrightHouse will compensate customers who had cancelled agreements after one downpayment but had not been refunded.

It will also make payments to those who signed up to lending agreements that "may not have been affordable".

The FCA said BrightHouse had not acted as a "responsible lender".

The firm, which lets customers pay for household items such as washing machines and televisions on a weekly basis, has been criticised for its business model.

In 2016 a BBC investigation conducted by Ed Miliband, the former Labour leader, highlighted the example of a £358 washing machine that ended up costing more than £1,000.

BrightHouse has apologised to customers.

There is no need for customers affected to contact BrightHouse. It will write to 213,000 current and former customers by the end of the year, explaining what they are due.

Customers whose deposits BrightHouse failed to refund signed up between April 2010 and April 2017. These customers will receive an average payment of £27.

The second group includes those who took out an agreement between April 2014 and September 2016. These will receive an average payment of £147.

In the case of customers who were not assessed properly at the start of the loan who may have had difficulty making payments, BrightHouse will pay back interest and fees along with compensatory interest of 8% - provided they handed back the goods.
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Kmore1 h, 7 m ago

Taking advantage & mascurading yourself as a legitimate business whilst …Taking advantage & mascurading yourself as a legitimate business whilst actually being loan sharks is another matter.

Lets not forget, the majority of people here are not buying food, hell they are probably not buying cookers or fridges, they are buying high end electronics as they feel its a right to own them. This is the biggest issue, too many people think that not earning, or not earning enough, shouldn't be a barrier to spending, and it damn well should be.

Noone at Brighthouse holds a gun to the heads of these people, the biggest loser is the taxpayer as we fund it! Any refunds due to anyone on benefits or tax credits should go to the taxpayer as the money was clearly not missed by the original recipient when they decided to take pay for their 65" TV at £5pwk for 85years!
samantha.murdoch3 m ago

I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 …I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 pounds for this over 3 years total rip off a could of bought 3 of the fridge frezzer outright at a normal shop



You mad bro. You could have had a Ps4 for that, with a extra game.
147 Comments
shocking, where are those lessons learnt from decades of experience in loan sharks?!
Additional the Consumer Credit Act 1974 (updated on or before19 October 2017) has been around such a long time, even way before 1975, the previous EU Referendum.
And the enforcement and detection from repeated lessons learnt in 2008 consumeractiongroup.co.uk/for…eet

Brighthouse was mentioned in this book in 2004 amazon.co.uk/Why…ing
32301696-WNW2h.jpg
Edited by: "splender" 24th Oct 2017
yet you still go on their site and see 69% apr rates , why?
brighthouse in falkirk about 2 years ago had an xbox one with kinect controller in the window.
total price after all payments was over a grand
I love seeing these companies getting one up 'em.
splender1 h, 19 m ago

shocking, where are those lessons learnt from decades of experience in …shocking, where are those lessons learnt from decades of experience in loan sharks?!Additional the Consumer Credit Act 1974 (updated on or before19 October 2017) has been around such a long time, even way before 1975, the previous EU Referendum.And the enforcement and detection from repeated lessons learnt in 2008 https://www.consumeractiongroup.co.uk/forum/showthread.php?130871-CAG-BRIGHTHOUSE-Consumer-Fact-SheetBrighthouse was mentioned in this book in 2004 https://www.amazon.co.uk/Why-Poor-Pay-More-Predatory/dp/027598186X/ref=sr_1_1?ie=UTF8&qid=1508840118&sr=8-1&keywords=Why+the+Poor+Pay+More:+How+to+Stop+Predatory+Lending[Image]


Lending to people who have poor credit history leads to them paying higher rates.

Lending to people with a good credit history leads to them paying lower rates.

Its just a matter of the likelihood of people with a low income leaving the lender to write off unpaid debts!!!
davelincs149 m ago

yet you still go on their site and see 69% apr rates , why?


Plenty of money to be made out of poor folk. Its a very profitable if cynical business model.
davewave15 m ago

Lending to people who have poor credit history leads to them paying higher …Lending to people who have poor credit history leads to them paying higher rates.Lending to people with a good credit history leads to them paying lower rates.Its just a matter of the likelihood of people with a low income leaving the lender to write off unpaid debts!!!



FCA ruling says executives have to be responsible, which means, amongst other requirements, more customers are disqualified so Brighthouse need not write off so much unpaid debts and repossess so many items.
davewave18 m ago

Lending to people who have poor credit history leads to them paying higher …Lending to people who have poor credit history leads to them paying higher rates.Lending to people with a good credit history leads to them paying lower rates.Its just a matter of the likelihood of people with a low income leaving the lender to write off unpaid debts!!!


Taking advantage & mascurading yourself as a legitimate business whilst actually being loan sharks is another matter.
Got a lot of phones had to send them no but never got my money back that I played for them plus some of there stuff I got time I pay them off I can get them cheaper elsewhere the interest rates far to much x
They list the product price at 760, and then delivery/installing is 65,
so you are paying 69% interest on a product price that has already been inflated by the same amount to start with.
splender34 m ago

This sends enough terror and shivers down my spine , "Annual Fixed …This sends enough terror and shivers down my spine , "Annual Fixed Interest Rate / Representative APR++ 69%"; 3 year payments = £1,638This TV delivered from John Lewis £489 cash price!

Kmore1 h, 7 m ago

Taking advantage & mascurading yourself as a legitimate business whilst …Taking advantage & mascurading yourself as a legitimate business whilst actually being loan sharks is another matter.

Lets not forget, the majority of people here are not buying food, hell they are probably not buying cookers or fridges, they are buying high end electronics as they feel its a right to own them. This is the biggest issue, too many people think that not earning, or not earning enough, shouldn't be a barrier to spending, and it damn well should be.

Noone at Brighthouse holds a gun to the heads of these people, the biggest loser is the taxpayer as we fund it! Any refunds due to anyone on benefits or tax credits should go to the taxpayer as the money was clearly not missed by the original recipient when they decided to take pay for their 65" TV at £5pwk for 85years!
frakison3 m ago

Lets not forget, the majority of people here are not buying food, hell …Lets not forget, the majority of people here are not buying food, hell they are probably not buying cookers or fridges, they are buying high end electronics


Have you ever walked past Brighthouse?

They sell things for 4 or 5 hundred times mark up. Not high end stuff. Low end stuff at criminal profit.
What about people who have changed address since last using brighthouse ? Do they need to contact them with new address
I was a customer so how can they get in touch with me as at diff address now xxx
Kmore8 m ago

Have you ever walked past Brighthouse?They sell things for 4 or 5 hundred …Have you ever walked past Brighthouse?They sell things for 4 or 5 hundred times mark up. Not high end stuff. Low end stuff at criminal profit.


Maybe in yours, the one in our town has consoles, large TV's and "fancy" (crap) furniture. Of course its overpriced, they dont even hide it! I didn't say otherwise, but I reiterate, NOONE is forced to buy from there, its a choice so I feel no pity or concern, please explain to me why a 65" TV is an "essential" item??
Kmore1 h, 21 m ago

Taking advantage & mascurading yourself as a legitimate business whilst …Taking advantage & mascurading yourself as a legitimate business whilst actually being loan sharks is another matter.


You think poor people don't understand high priced credit, 'putting it on the never never' isnt a new thing!
frakison3 m ago

Maybe in yours, the one in our town has consoles, large TV's and "fancy" …Maybe in yours, the one in our town has consoles, large TV's and "fancy" (crap) furniture. Of course its overpriced, they dont even hide it! I didn't say otherwise, but I reiterate, NOONE is forced to buy from there, its a choice so I feel no pity or concern, please explain to me why a 65" TV is an "essential" item??


Yes they have electronics but they sell them on finance to people that can only afford £80 a month on finance deal that means they pay £1k for a £250 TV. Or £1k for a £200 fridge. etc etc Brighthouse are nothing but loan sharks.
davewave4 m ago

You think poor people don't understand high priced credit, 'putting it on …You think poor people don't understand high priced credit, 'putting it on the never never' isnt a new thing!


I dont think anything. All I know & see is when a business or an individual is taking advantage out of another by an unfair contract & in this case Brighthouse deserve to go bust.

You may think their business practice is acceptable. I dont.
I'm open minded about this. Radio Rentals never came under the same flack and people ended up owning nothing. They do offer something called 'Brightcare' that covers customer for all costs involved in goods ceasing to work.


Simply put there are people out there that are not in the position to buy a £400 TV. What are their choices if they want one?
How would I get anything I have moved house since I paid for my goods .
OllieSt17 m ago

I'm open minded about this. Radio Rentals never came under the same flack …I'm open minded about this. Radio Rentals never came under the same flack and people ended up owning nothing. They do offer something called 'Brightcare' that covers customer for all costs involved in goods ceasing to work.Simply put there are people out there that are not in the position to buy a £400 TV. What are their choices if they want one?




I understand that your question was rhetorical, but their choices are that they can save up so that they can afford it, settle for a cheaper TV, settle for the TV they may already have or take on a debt to finance their purchase.

There isn't anything wrong with the first three options, by the way. I was always taught that wants don't always get and in situations such as simply wanting a new TV I feel it is probably unwise to go in to debt to pay for it.

The choices obviously narrow when an appliance is something that is needed immediately, but is not immediately affordable. In such cases going in to debt may be some people's only way of realistically financing a purchase.
Brighthouse "Taking advantage of Diane Abbott students".
RossD8913 m ago

I understand that your question was rhetorical, but their choices are that …I understand that your question was rhetorical, but their choices are that they can save up so that they can afford it, settle for a cheaper TV, settle for the TV they may already have or take on a debt to finance their purchase.There isn't anything wrong with the first three options, by the way. I was always taught that wants don't always get and in situations such as simply wanting a new TV I feel it is probably unwise to go in to debt to pay for it.The choices obviously narrow when an appliance is something that is needed immediately, but is not immediately affordable. In such cases going in to debt may be some people's only way of realistically financing a purchase.



I agree. When a washing machine breaks down and someone cannot afford to buy outright a new washing machine the choices are:

. The likes of Bright House
. Secondhand washing machine
. Launderette.
. Hand wash


People always have choices.

Just because it doesn't apply to the majority of poster's here, it doesn't mean this isn't a real life situation. I can't be bothered to work it out, but I would hazard a guess that if someone was to buy a washing machine from John Lewis and use an average sub-prime credit card and then choose to pay just the minimum each month the total cost would also be horrific.
Edited by: "OllieSt" 24th Oct 2017
.MUFC.5 m ago

Brighthouse "Taking advantage of Diane Abbott students".


And anyone else starting a home for whatever reason reason on £75 a week benefits that needs something to sit on, cook food in a microwave, store food in a fridge or boil a kettle for a cup of tea.
I'm with em now wat will happen
I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 pounds for this over 3 years total rip off a could of bought 3 of the fridge frezzer outright at a normal shop
samantha.murdoch3 m ago

I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 …I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 pounds for this over 3 years total rip off a could of bought 3 of the fridge frezzer outright at a normal shop



You mad bro. You could have had a Ps4 for that, with a extra game.
Kmore1 h, 8 m ago

I dont think anything. All I know & see is when a business or an …I dont think anything. All I know & see is when a business or an individual is taking advantage out of another by an unfair contract & in this case Brighthouse deserve to go bust.You may think their business practice is acceptable. I dont.


what is unacceptable about lending people who wouldn't otherwise get credit, but who want it, if you think you deserve access to credit why don't poorer people?
samantha.murdoch9 m ago

I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 …I got a fridgefrezzer off brighthouse n ended up spendin more than 1400 pounds for this over 3 years total rip off a could of bought 3 of the fridge frezzer outright at a normal shop


good for you, you made a choice.
davewave5 m ago

what is unacceptable about lending people who wouldn't otherwise get …what is unacceptable about lending people who wouldn't otherwise get credit, but who want it, if you think you deserve access to credit why don't poorer people?



So tell me Dave what is an acceptable level of interest & what is extortion?
What about if you have moved from the address you had your account will they try to find you ??
Kmore17 m ago

So tell me Dave what is an acceptable level of interest & what is …So tell me Dave what is an acceptable level of interest & what is extortion?


What do you think is an acceptable level of interest
helen.moore11 m ago

What about if you have moved from the address you had your account will …What about if you have moved from the address you had your account will they try to find you ??



Brighthouse has a Freephone number 0800 526 069 for customers to call if they feel their details have changed
Kmore9 m ago

Why are you asking me? Ask Dave.



Why are you asking Dave?
OllieSt1 h, 15 m ago

I agree. When a washing machine breaks down and someone cannot afford to …I agree. When a washing machine breaks down and someone cannot afford to buy outright a new washing machine the choices are:. The likes of Bright House. Secondhand washing machine. Launderette.. Hand washPeople always have choices.Just because it doesn't apply to the majority of poster's here, it doesn't mean this isn't a real life situation. I can't be bothered to work it out, but I would hazard a guess that if someone was to buy a washing machine from John Lewis and use an average sub-prime credit card and then choose to pay just the minimum each month the total cost would also be horrific.



Theres the option of going to domestic and general if anything breaks down , I was quoted £12 a month but they told me if I wait a month I can get it for £9 a month which is what I did, saved a lot of money as they needed to replace drum and bearings on the washer , I was with Brighthouse for many many years about 14 years and couple of times fell behind and one day I got back from work I had a lady with her foot in door trying to get in when one of the family members opened it , asked her what she thought she was doing and she said she come for my stuff after being in arrears for 2 weeks , I ended up having a right argument with her and went down the next day to the shop and warned never to do that again as I paid over the amount in the agreement for them to not even take my goods and telled her she aint no bailiff ,so I apid them up and haven't been with them for 10 years plus and I was paying £70+ a week.
Edited by: "therocksays" 24th Oct 2017
Kmore44 m ago

So tell me Dave what is an acceptable level of interest & what is …So tell me Dave what is an acceptable level of interest & what is extortion?


any amount of interest is acceptable where both parties accept the terms without force.

Extortion is the practice of obtaining something, especially money, through force or threats.

davewave4 m ago

any amount of interest is acceptable where both parties accept the terms …any amount of interest is acceptable where both parties accept the terms without force.Extortion is the practice of obtaining something, especially money, through force or threats.



or under color of official right
davelincs14 h, 31 m ago

yet you still go on their site and see 69% apr rates , why?


Because the people who can't afford things think they're entitled to own the same as people who work and make their own way. How many of these people have the big TV's on the living room wall, every child has their iPad, laptop, xBox etc.
Kmore12 m ago

or under color of official right


what do you mean by that?
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