Lending money to people on low incomes comes with an obligation to act fairly and carefully.
Today the Financial Conduct Authority (FCA) decided the hire purchase company BrightHouse has not being acting as a “responsible lender” since 2015.
The regulator swiftly ordered the firm to pay compensation to customers worth a whopping £14.8 million.
Brighthouse are one of several growing rent-to-own retailers charging customers a premium for paying for essential items in instalments.
The FCA found thousands of BrightHouse customers had not been properly assessed to work out their ability to repay loans.
Our top priority is to ensure that they are reimbursed as soon as possible
Around 81,000 customers who had to give back products like fridges, cookers or couches after failing to make payments will now receive interest and fees charged, plus compensatory interest of 8%.