Monday Morning

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BrightHouse was faced with an influx of compensation claims

BrightHouse - the largest rent-to-own operator in the UK - is collapsed to save with the administrators now trying parts of The Business .

customers should continue to collection of the monthly payments required to keep your household goods, with the administrators as the agent of the.

had to fight The Company , after an influx of compensation for.

His shops were shut down due to coronavirus restrictions on the trade.

Julie Palmer of the corporate recovery business that was Begbie's Traynor, said: "Coronavirus was the last nail in The Coffin for BrightHouse. "

BrightHouse, the trading name of Caversham Finance Limited, has over 240 stores and 2,400 employees, whose jobs are now in great danger.

The Company is the collapse minutes in front of the Italian Restaurant chain Carluccio's. Together, the two companies Will employ 4,500 employees.

What is happening with my device?

BrightHouse 200,000 in rent-to-own customers make monthly payments for appliances is in force rents (and pays interest), until paid in full.

Many are on low incomes and find it difficult to pay for access to credit from the mainstream lenders, for refrigerators, televisions, washing machines and other electrical appliances. Only about a third are in work.

- clients should continue to be payments in the usual way, the administrators confirmed, although for some, the closure of shops and no door-to-door-means collection due to coronavirus, that should be.

Otherwise, to refunds, even today, The Company is in administration, could lead to additional costs and the amount of damage a credit score. However, those affected have no figures from practical reasons, because of the coronavirus Will not be charged extra, or have your credit score.

All new rent-to-own agreements, and cash loans, which The Company also provided, but now it is stopped.

maintenance, warranty, and insurance, is the claim still valid, ordered the delivery of the essential items already, but in accordance with coronavirus restrictions. These services operated in addition to the rent-to-own service.

What happens next?

The collapse, means that the administrators Grant Thornton Will now try to find a buyer for all, or some, of The Business .

The website of The Company was still in operation on Monday Morning .

in addition to many other lenders of high-cost credit, The Company was challenged by people Who Said they were given credit when they shouldn't have been.

In October 2017, The Company was fined almost £15m by The City regulator, the Financial Conduct Authority (FCA), the for not as a "responsible lender"

Some of these customers lease contracts were awarded, although you Will not be able to make more realistic the repayments.

In January, The Company said it was said under the pressure of dealing with the additional mis-selling claims

debt-Advisor Sara Williams, who writes that: "customers need to think, if you can manage the repayments.

"If it decreased your income, because of the coronavirus, you should ask for a payment break. And if the article is simply too expensive, you should ask for a lower payment arrangement. You may be able to affordability complaint and receive a refund of interest you paid on the previous article. "

However, those who claim to compensation, which must now may have to wait longer and get a fraction of what you could have expected.

Terri Carter faced, which led the pressure after missing repayment

The Rules , in the past year, according to the demands of higher and higher debt.

The FCA held that interest to be capped would be calculated to be as much as the cost of The Product .

prices were controlled to calculate, with shops only in the location, not More Than the Median - The Middle Price of three mainstream retailers, including delivery and installation fees.

business has also been prevented from increasing its prices for insurance premiums, extended warranties, arrears, or fees, win back lost revenue from The Price -cap.

Before The Rules were brought spiral in interest rates has meant rent-to-own consumers would have to pay at the end of More Than four times the retail Price you would have paid in the stores.

Among those who were unhappy with how The Business was operated, Terri Carter , a paralegal from Great Yarmouth .

she had ordered a TV through BrightHouse, after the money in furnishing your new home. She went to The Store to explain that she needed to Miss A repayment to find the later, A Woman in a suit, accompanied by two "big guys", knocking on your door.

At Home with her son, she threatened to take you, your TV, and you felt compelled to agree to the additional payments.

"I work in law so I knew my rights, but what if it happens to someone older, or someone who just got a baby?", She Said .

Angela Clements, the founder of not-for-profit-buy-now-pay-later, the operator of the Fair For You , said: "While my heart goes out to BrightHouse employees their jobs Will lose, I hope that your collapse Will make other lenders think twice before you try to get the Easy Money from hard-working families in this way.

"There is a clear need to support and fast, the affordable lending sector is not to scale, so that more high cost credit, mutated in the gap. "

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Source of news: bbc.com