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

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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

I'm a single mum on income support and I hate these adverts. I'm able to get a budgeting loan from the DWP to pay for things like appliances. If you're on any income-based benefits and you're a single parent then you can borrow up to £800 odd at a time. It's repaid out of your benefits but at least it's interest free. So I'd never be tempted to buy from Brighthouse, I can just get the budgeting loan and be able to shop around for the cheapest price. I think people just don't know about them sadly (or are incorrectly told that they've been abolished) and they end up paying silly amounts of interest at places like Brighthouse to get things replaced quickly.

Have seen far worse percentages than this. I remember seeing an add (put out just before xmas) for 200% interest on kids bikes. Just googled payday loans and saw an APR of 1291% for short term lending. I do not agree that Brighthouse are merely covering the cost of defaults at 69.%

People like Brighthouse do tell you upfront what it will cost and everyone knows the interest rates. It’s not hidden.

However, I think there should be a government scheme that can supply essential goods such as fridges, cookers and washing machines (and these days a washing machine is essential) for a market price and with interest at say 5%.

Payment collection could then be through the benefits system or employer deductions. It would help people stay out of the poverty trap but make sure they can have decency. Profit on the goods would also mean that the it would be a self sustaining scheme.

I thik some of the appeal to those already in a lot of debt is that Brighthouse doesn't offer purchases where you buy on credit.

Their contracts are set up as Hire-Purchase contracts. This means that you don't own the item legally at all until you've completed the payment or a majority of the payments. This means that those items are immune from being confiscated by bailiffs for other debts as technically they are not yours but belong to Brighthouse still.

This can be reassuring for people who are in serious financial straits and fear that they may have the wolves at the door anytime.

I've had payday loans too, and Provident.
Things are better now, but I still have no credit rating at all.
I tried to get a contract phone recently, not the latest phone and it was £16 a month, they turned me down.
I bought it outright instead

but because the only offered the fancy washing machines/TVS etc.There was no cheap, does the job, option

Yep, instead of offering a £250 machine for £500, they only offer the £500 machine for £1k.

Expensive to be poor, especially because you can't get "normal" 0% credit with the big names like e.g. Currys.

I know someone who ended up paying nearly £1000 for a PlayStation through them. Daylight robbery, taking advantage of people on low incomes. It's disgusting.

There'a one in the shopping centre in my town, my mouth always drops open at the example of how much interest is paid on an advertisement on the window. The really good news is that it's mostly always empty when I go past so with any luck will close down some time soon.

I dont like Brighthouse at all, but everyone saying it shouldnt be allowed on this thread will not be the type of customers that would ever need to use them, so its easy to be outraged. Different if you needed a washing machine and didnt have any other means of getting one.

I didn't even want a £250 machine, more like £150 which I think is roughly the pice of the cheapest.

People that use these places are desperate, your washing machine breaks but you can’t afford a new one, what do you do? £3 a week sounds like nothing but in fact they are being ripped off and charged more than double what the item is worth. Making money out of the poor

It's a lack of choice and options. In Birmingham city centre there was a Brighthouse and a similar high credit store in the same street. A British Heart Foundation furniture & home store opened a few doors up and both high interest stores have since closed down.

Coffee - that's interesting. Hadn't heard of those loans. The other option is a Credit Union loan - much cheaper rate of interest than Brighthouse and you can buy a cheaper model from anywhere you like.

Isn’t The Queen an investor or Brighthouse? Paradise Papers etc?

OneEyedWillie that was a good result.

The other option is a Credit Union loan - much cheaper rate of interest than Brighthouse and you can buy a cheaper model from anywhere you like

I love credit unions, have been a member for 20 plus years. But you need to pay into them for a certain period of time before you can get loans, It would be good if people had more information about them to.

Not sure if its confirmed but I heard from someone today that Perfect Home is closing down, they are exactly the same type of store as Brighthouse.

I save with Cedit Union now, so can take out my own money or get a loan if I needed.
It's not widely publicised though and, at least with mine, you need to pay in before you can borrow.

It is absolute exploitation of the poor. They do it purely because they can.

Keli. Woop dee doo. However what's that got to do with anything.

Before electricity privatisation you could buy your white goods on HP from your local supplier, who collected back via the slot meter and so didn't have to price in too much for defaulters. Happy days.

I swear I saw a loan with an apr of about 1362% advertised the other day. I wasn't wearing my glasses so there could have been a decimal point between the 6 and the 2, but I don't think there was

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.

This. It costs a lot more to offer credit to this group as you need to employ more people to chase up payments, repossess items etc etc etc. So that cost is passed on to the borrower.

As long as they are upfront about the full cost of the product then I don't have a problem with it at all. I do have a problem with aggressively trying to sell more new products once the original credit agreement ends, but we are living in a free country and people have to take responsibility for themselves to some extent.

Some loans really do cost that, but if you take a small amount and pay it back on time it'll maybe cost £5, and when you need the money to heat the house/for food/tights because your try old fell down and ripped hers etc, what's the alternative?
(Credit Union as we've saud, but when did you last see them advertised, and when you are choosing between heat or eat, then how are you going to save?)

peach my mum has a catalogue and keeps trying to order DC stuff out of it, it's over £100 above retail price in-store but because it's on interest free for a year or pay £4 a month it's a good deal.

Bright house are dreadful. They prey on people in need and are without options.

I saw an interview with the guy who owns them. He said he was offering a service because people want the latest stuff and nice homes. He feels he is doing them a favour. I don’t know how he can sleep.