To be totally shocked at the Brighthouse Ad I have just seen.

[Oldsu]

Of ill with tonsillitis at the moment so don't usually watch day time TV, I have heard of Brighthouse before of course but didn't know just what they charged.

Perky lady has just told me the company doesn't use jingles, slogans or cartoon characters, just goods I might want at affordable prices - which she boasts THEY DO NOT HIDE.

She then showed a washing machine - the type a young mum with a family may need, sales price with delivery and installation £235.50 (yes got ad on pause whilst typing this) but for 156 payments of £3 it will cost £468 that's 69.9% apr but that's OK because the customer knows they are going to be paying that much but of course a lot of people on low wages or on benefits have no choice but to use places especially for essentials if they cant get credit elsewhere or cant afford to buy without credit.
Why are these people allowed to charge this much, its no wonder people get into debt.
I am really appalled its seems so unfair

[Spaghettijumper]

It is very unfair. There is far more regulation now than there used to be (if you can believe it) and there's been talk of cracking down further on this sort of lending but I can't see it happening any time soon.

[SweetMoon]

Thats a disgusting amount of interest. They are taking advantage of the disadvantaged and it shouldn't be allowed to happen.

[WeirdCatLady]

It’s the same with energy, I saw a thread on here where a single mum was struggling to heat her tiny flat. She had a prepay meter thing and it cost her more to heat her tiny flat than I spend on my large house. But she had to use the meter thing as she couldn’t afford to set up the monthly direct debit type account. I was shocked.

But I don’t see what’s ever going to change, I remember companies doing this sort of thing in the 1970’s.

[IHaveBrilloHair]

There's times in my life where in theory I needed Bright house, but I went without not because of the interest, but because the only offered the fancy washing machines/TVS etc.
There was no cheap, does the job, option.
I scrimped for a few weeks and bought second hand.

[Keilninnock]

I never let my children eat junk food. Bit today a Happy Meal was 2p more! Obviously i never let my children eat this stuff but today DH was ill with a blocked nose so even though I never let my children ever eat anything but woven mist and breast milk we accidently ended up there because someone had a gun to my head.
.
.
It's ok to watch shit tv and have the occasional burger. There really is no gun

[Sparklesocks]

So grim! There is a Bright House in own town centre and I'm relieved that it's always empty..

[MissionItsPossible]

@Keilninnock



YANBU OP Preying on the disadvantaged. People can say all they like "Well nobody is forcing them" but sometimes they are without choice.

[firstbornforbread]

I get really riled up at these pay it up places.

Yes, some families haven't the option of paying full cost up front for a washing machine/cooker/fridge etc. Household essentials, so paying up is fine. Of course there is an added fee, it's high risk as many people can't pay the full term. Or in case if ex bil sell the stuff with no intention of ever paying.

But WHY is it not run of the mill, average items.

Why is my local 'perfect home' store selling 1.5k sofas and £500 washing machines! The final cost is astronomical on these items.

People who Really do need these essentials need more choice, everything is over the top expensive in the first place!

[Keilninnock]

I don't doubt it. But people.watch Jeremy Kyle, people see these adverts. Sometimes we see these adverts because we are ghoulish and enjoy the superiority. Don't have to justify how you came across the shit. Just be angry with the shit.

[Dancingleopard]

I agree it’s awful

[sleepyhead]

They pay more because the group that buys from Brighthouse is high risk.

A higher percentage of this group will default on payments and so the rest of them have to pay more so that Brighthouse can still make a profit.

It's the same reason that any higher risk person will not get such a good mortgage rate. Or a higher risk driver won't get such a good car insurance deal.

It's shit, but it's the way it is. Second hand is the way to go if you can, but sometimes you need the thing you're buying, and sometimes you're so fucking tired of being poor you buy the thing you know you can't really afford just to feel like everyone else for a bit.

[Blanikbalm]

That's why they call it the poverty trap

[araiwa]

Poor people are high risk borrowers

£3 a week is probably cheaper for a family than going to the launderette if they can even find one. And after 3 years they have a washing machine they own

[sacreVert]

Because the people who are at home watching these adverts and don't understand how expensive this is going to be are likely to default on the repayments.

Do you think that companies should have a limit of what they can charge for a product? Who assess it and sets it?

[megletthesecond]

Yanbu. That place drives me nuts. Exploiting people who are cash poor and not financially savvy.

[Eatalot]

Payday loans are upwards of 1000%apr. They are aimed at people on low income. I think the big supermarkets should do payday loans but for grocery shopping at a very low apr.

[HopeAndJoy16]

There was a Bright House-type store in my local town that had customers give them copies of their house keys as some sort of guarantee for the payments
It was in the local paper so I'm assuming that trading standards put a stop to it. They are disgusting companies

[Juells]

Easier to come up with £3 though, if you don't have much of an income. And I'm guessing quite a few people default.

I dunno, if I was very broke I wouldn't think it was that bad a deal. Things look different when you don't have the money to buy outright, or get a bank loan.

[gamerwidow]

It's a poor person tax and it shouldn't be allowed. They rely on desperate people living hand to mouth to prop up their business. Shameful!

[IHaveBrilloHair]

I understand the high risk borrower thing, what I don't like is the fact that they don't sell cheap goods, only the trendiest stuff.
I didn't want, or need a Samsung washing machinesthat collects the clothes and then sang me to sleep, I was able to go without for a few weeks, but I'm a two person household, it's not that easy for larger families.

[NaughtToThreeSadOnions]

My iPad is pretty much my tv, radio, internet very important to me. My last one was unfixable,

I looked at the various ways I could get a replacement, grade A refurbished, brand new or bright house. Bright houses interest on an iPad Air 2 was 99.9% - thats basically 100%

When I told my stepdad he was like don't touch it, yep I'd worked that out.

But seriously if you have a kid in high school, electronics are pretty esssential these days.

What's even worse though are these emergency credit loans like Oakham. Aimed at the poorest in society whose interest rates are frightening.

[Iooselipssinkships]

Please don't be fooled into thinking you get the new items either! They send out refurbished used junk and the shiny lovely things just stay in their stores.
You can't just get top of the range stuff either you have to become a member and prove you pay by taking out something cheaper and usually broken.
3d telly - 3d didn't work and it came without a remote, covered in scratches and took a day to load anything.
Biggest mistake was going with them, they're vultures and hound you for money even when you've returned the useless item.

[Seafoodeatit]

They're one of the companies that featured heavily for the short spell I worked at the CAB (I was doing archiving for them so I went through a lot of files) they seem to be very good at 'persuading' people to take on a fair few amount of items.

[BumpowderSneezeonAndSnot]

There is always a choice if you swallow your pride. Lots of charities and CIC organisations do white goods for free or cheap for exactly those type of families. They're not the top end stuff but they'll do for an emergency fix if your oven packs up or child throws a shoe at the telly

[SendintheArdwolves]

@Keilninnock

Maybe the OP was just explaining why they were posting about this now - if they had just said "Doesn't Brighthouse offer a crappy rate of interest?" they might have got a whole chorus of "It's been like that for years, where have you been for the past decade, durr, everyone knows that" etc.

Because some people on here just can't resist the urge to go off on a tangent in order to have a pop at the OP