Hundreds of thousands of customers who buy household goods through rent-to-own schemes are being “ripped off”, a group of MPs has concluded.

July 22, 2015

It said some of the poorest people in the UK are being charged interest rates of up to 94% a year to buy TVs or washing machines.

 

The All Party Parliamentary Group on Debt and Personal Finance now wants the regulator to take action.

BrightHouse, the largest company, said it was disappointed by the report.

 

Under the rent-to-own model, consumers take out an agreement to buy a product, and then pay weekly instalments until they own it – similar to a hire purchase agreement. But usually customers are made to take out compulsory insurance and warranties, which can double the eventual cost. The MPs said that such insurance may have been miss-sold – especially where people already had household cover.

 

BBC news 10 February 2015

 

How to avoid being “ripped off” on rent-to-own household goods. First shop around for the product that best fits your needs and budget. Look at Currys and AO. Then obtain a Lendfair guarantor loan that covers the cost. Guaranteed to save you money compared to buying the same goods from Brighthouse, you own the asset straight away and you can still pay by regular affordable payments!

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