The charity Barnardos has warned that those who sign up to deals on rent-to-buy household goods can end up paying out more than double in what looks to be a swipe at BrightHouse.
Barnado’s say companies should be compelled to display the average internet and high street price of fridges and washing machines they sell. It goes on to point out the cost of a Beko washing machine from a rent to own company reached £1,250 when it could be bought for £470 from a high street seller.
The charity also highlighted a Beko fridge freezer which cost £319.99 at Comet but £606.84 at weekly payment store BrightHouse, when the initial cash price of £421.54 was paid off over 156 weeks.
BrightHouse pointed out that its services enable families to buy items they might otherwise find beyond their reach and says it is a responsible lender.
“If Barnardo’s has any issues or concerns about our business or how we operate we would be very happy to discuss these with them,” a spokesperson added.
However, Barnardo’s believes such rent-to-buy companies target low income families that do not have access to banks.
Speaking generally, Barnardo’s chief executive Anne Marie Carrie said the most vulnerable families were falling into “an unaffordable debt trap”.
She said: “The poorest families are stuck between a rock and a hard place, with one in 10 households on low incomes managing their finances without access to mainstream banking services.”
Source: Sky News