Retailer failed to assess customers
Brighthouse ordered to pay £14.8m to customers
Retailer failed to assess customers’ ability to pay
A quarter of a million customers of the household goods retailer Brighthouse will receive refunds following a ruling by a financial services watchdog.
The rent-to-own provider, which offers goods via hire purchase agreements, failed to properly assess whether customers would be able to meet their monthly repayments, said the Financial Conduct Authority.
BrightHouse has been ordered to pay £14.8 million in compensation to around 249,000 customers, covering 384,000 lending agreements. Those affected will receive either cash payments or balance adjustments from the provider.
Jonathan Davidson, a supervision executive at the FCA, said: “During the time in question, BrightHouse was not a responsible lender and failed to meet our expectations of firms in this sector. I am pleased that it has agreed to provide redress to those customers affected by these historic practices.
“This scheme continues our work with the rent-to-own sector to resolve the concerns we have previously identified.
“Responsible lending and the fair treatment of consumers, especially those in financial difficulties or who are vulnerable, are key priorities for us.”