BrightHouse customers to be refunded £14.8 million

24 October 2017
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A quarter of a million BrightHouse customers will receive refunds after the Financial Conduct Authority ruled the firm had failed to treat them fairly.

The rent-to-own provider, which offers household goods to consumers on hire purchase agreements, failed to properly assess whether customers would be able to meet their monthly payments.

BrightHouse will be required to pay £14.8 million in compensation to around 249,000 customers, covering 384,000 separate lending agreements. Those affected will receive either cash payments or balance adjustments from the provider.

The FCA says the firm’s affordability assessments were inadequate, especially for those most at risk of entering financial difficulty.

The refunds will affect two groups of customers who were not properly treated by BrightHouse:

  • customers who did not have their circumstances properly assessed during the loan process and have struggled to repay their loans. Those who handed their goods back will be refunded the interest and fees they paid, plus 8% interest as compensation. Customers who have retained their goods will have the remaining balance written off. This will cost the firm £10.1 million and covers 81,000 customers who took entered an agreement between 1 April 2014 and 30 September 2016
  • customers who made a first payment to the firm for an order which was cancelled before the goods were received. This first payment was not returned to customers. These customers will have this first payment refunded, plus 8% interest as compensation. This covers agreements made after 1 April 2010 and will see a total of £4.7 million returned to 181,000 customers.

BrightHouse will write to all affected customers to outline the balance adjustment or refund they are due. The firm has also taken steps to improve its processes in future, including revising its late payment fees.

‘BrightHouse was not a responsible lender’

Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA, says: “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.”

Comments

In reply to by anonymous_stub (not verified)

Has anyone had a letter from brighthouse yet? Was hoping to have a letter by now as i know im on the list for a refund,think brighthouse are digging their heels in now

In reply to by anonymous_stub (not verified)

Hi I was a bright house customer just wanted to know if I’m entitled to compensation

In reply to by anonymous_stub (not verified)

humpty dumpty you stupid

In reply to by anonymous_stub (not verified)

Hi I was with bright house for a number of years and paid a lot of money to them was wondering how to find out about all this thank e

In reply to by anonymous_stub (not verified)

My wife and I have used Brighthouse a few times since 2012 but we found out we are not getting compensated from them simply because we both work.apparently its just people on benifits that are being payed out which i totally disagree with.I know quite a few peiople on benifits that can afford more than what we can and have a better life style, its not just people on benifits than can struggle to pay , working couples also struggle which is why they should also be paid out.They should not discriminate between working people and unemployed people, the same agreement and forms was filled in by everyone.Brighthouse did not check circumstanes in the ordered way which is what they did for everyone wether your working or not so why is it just the unemployed getting this money back. #Workingclassscrewedoveragain

In reply to by anonymous_stub (not verified)

Had a Xbox 1 in 2015 ,which charged me £1,365.00 which I never knew as they just made me sign the agreement with out checking it first ,also I had a Samsung glaxay s6 in 2016 to which I paid for a brand new phone which got sent back as it didn’t work they gave a htc phone which also messed up and I had to send it back ,then they gave me a s6 in silver which was second hand so I said I’m paying for a new phone so why should I have second hand and they said if I want a new phone I would loose out on all the money I paid onThe phone already so I’ve paid for a new phone and only paid for second hand I think it’s a disgrace,I would be grateful if you could get in contact with me as I feel like I’ve been ripped off ,yours sincerely Miss Kerry Gibbard

In reply to by anonymous_stub (not verified)

I had a xbox 1 in 2015 and they didn’t tell me I had to pay 1.365.00 pound so I sighed my agreement as all they said to me that I have to pay 10.50p week on that and 4.68 on insurance now their saying cause I sighed the agreement they carnt do nothing and I sighed a agreement for a new Samsung s6 which was grey but on my letter it says black it messed up so I sent it back for them to give me a second hand one I said I want a new one as I was paying a new one and they said I will have to repay all over again so I’ve payed for a new phone when they gave me a second hand one

In reply to by anonymous_stub (not verified)

I had bright house in a different name as since I had it bk in 2010 I remarried so my name then was ms Susan woods and I also have moved to devon many thanks sue wright

In reply to by anonymous_stub (not verified)

I haave been with brighthouse for years but mo longer with them as i lost my job and cudnt afford to.pay can i make a claim back or refund

In reply to by anonymous_stub (not verified)

I'm a single parent of 4 children I'm on benefets I'm a customer of bright house for 4/5 years now I've had a fridge freezer a TV a three piece a bed and a iphone 6 for my daughter for christmas i was paying 70 pound a wk back for those items so thing how much i was paying in total im sti on ll payingpaying them now and still taking my payments is that right, they haunted me with phone calls and comming out to my door sometimes 2/3 times a day when i missed payments me and my childreni had to hide they used to bang bang on the door but i was scared they take my things bk I was in debt with my other bills,should they be still taking payments from me now unill all this is sorted no .

In reply to by Kylie (not verified)

i got a letter and waiting for my £73 refundthey also said my boom boom music centre was fully paid...if that is so why havent i got it they removed it with my cooker

Early repayment

Asked for a final balance to clear my account . Phoned up to clear balance was told I needed to give a weeks notice to clear the balance .Went into pay the balance the following week and was charged an extra £28.00 interest

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