BrightHouse, the ‘rent-to-own’ company, has announced it will be closing 30 of its 270 branches around the country, including Newport on the Isle of Wight.
When Brighthouse opened on the Isle of Wight, many Islanders openly criticised the company that attracts those on low incomes.
Very high interest rates
Charging up to 99% interest, the company offer goods such as washing machines, cookers, furniture, computers and mobile phones.
Brighthouse say a customer renting to own a TV would pay £500 in interest for a product with a purchase price of £840.
New rules
The latest filed accounts for the company show that revenues slipped by £35 million and from next April, new Financial Conduct Authority (FCA) rules mean that the maximum interest paid on goods can be no more than the cost of the product itself.
Current customers
A Brighthouse spokesman said,
“We will be speaking to all customers affected by the store closures and either transferring them to another local store or serving them online.
“We’re also introducing PayPoint, allowing customers to pay BrightHouse in cash at 28,000 locations across the UK.”
Compensation to customers
In October 2017, BrightHouse, was ordered by the Financial Conduct Authority (FCA) to pay a whopping £14.8m compensation to customers.
Last autumn, Poundland were criticised for allowing Brighthouse to rent floor space in four of its shops.
Our thoughts are with those at Newport Brighthouse who will be losing their jobs.
Thanks to all the readers who shared the news with us.
Image: © Google Maps/Streetview
