BrightHouse to reimburse £14.8m to customers
The rent-to-own firm BrightHouse is to reimburse £14.8m to customers following the intervention of the Financial Conduct Authority (FCA). The FCA says that BrightHouse’s ‘lending application affordability assessment processes and collections processes did not always deliver good outcomes for customers particularly those who were at a higher risk of falling into financial difficulty’. Two groups of customers will receive reimbursements. The first group is those who did not receive a refund of their initial payments when an agreement was cancelled within the first 14 days. The second consists of customers whose circumstances were not assessed properly at the outset of the loan to determine whether they could afford it and may have had difficulty making payments. Customers who handed back the goods will be paid back the interest and fees charged under the agreement, plus compensatory interest of 8%. Customers who retained the goods will have their balances written off. BrightHouse will write to all affected customers, some of whom are affected by both sets of circumstances, to explain the refund or balance adjustment that they will receive.