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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To be delighted that Brighthouse is about to go bust?

326 replies

AgeLikeWine · 27/03/2020 15:48

It’s not all bad news at the moment. Smile.

Brighthouse is a nasty, exploitative business which rips off the poor, the uneducated and the vulnerable by selling household goods at inflated prices on finance at extortionate interest rates. Their business model relies on creating spirals of debt in a similar way to Wonga.

Normally I would sympathise with the staff of businesses which go bust, but not in this case. Good riddance.

OP posts:
Sonichu · 27/03/2020 18:43

"So what do you suggest they do when their cooker or washing machine breaks then?

Why do I have to suggest something to argue against the rip off merchants? How ridiculous."

You could have just said "I don't know".

SciFiScream · 27/03/2020 18:44

It's really expensive to be poor. Can't get cheap credit. Can't buy in bulk to save. Can't buy quality to benefit over the years. Can't save, can't anticipate the future.

WaxOnFeckOff · 27/03/2020 18:46

So what do you suggest they do when their cooker or washing machine breaks then? If they don't have the money to pay out £30 or £50 in one go to buy one from Facebook or a second hand shop what exactly do you suggest they do?

And how many of the folk selling a washing machine are able to drop it off? Not many, so they also can't buy as they don't have a van or know someone with a van so they would then need to employ a "man with a van" so that then probably doubles the cost of the item. Not such a bargain any more.

category12 · 27/03/2020 18:48

"So what do you suggest they do when their cooker or washing machine breaks then?

You go without, that's what you do.

You wash your clothes in the bath or if you have family/friends nearby that are amenable, you wash your clothes there, or you go to a laundrette, while you save up the money to buy a refurbed one.

Or you use the kettle and toaster, microwave if you have one, and if you have family/friends nearby sometimes go there/cook there, while you save up to buy a refurbed one.

SciFiScream · 27/03/2020 18:49

WaxonFeckoff - you're missing my point.

Month 1 buys the £10 boots

Month 2 - Month 12 - saves £3? £5? (He can afford the £10 spend in month 1 so why not put a little aside in anticipation of a future spend)

Then when he's saved the required amount he can then buy new boots. Hopefully within the time limit of the crummy boots falling apart. But if not he has to not save one month, buy 1 more pair of crummy boots and he'd definitely have enough for expensive boots next time.

He wouldn't be able to touch the savings come hell or high water though.

There's not enough detail in the story to explain why the Captain doesn't save. (I read it decades ago! So can't remember the details)

category12 · 27/03/2020 18:49

You can fit a cooker or washing machine in most cars.

Alsohuman · 27/03/2020 18:51

revelling in the misery of others who are about to be unemployed is a fucking shit thing to do

There hasn’t been any revelling. I just don’t have much sympathy. Inflict misery, don’t be surprised when you reap it.

Port1aCastis · 27/03/2020 18:51

....that's assuming people have a car

Absentwomen · 27/03/2020 18:52

Anybody arguing 'what do you suggest' when it's pointed out how fucked that that kind of borrowing is clearly doesn't understand the basics of financing.

Agree @playthestation

One doesn't even need to be a macro economic genius to work out how the model of Brighthouse works. It ties people up in knots financially and the marketing surrounding it should be banned.

An atrocious model of high ticket items. One of the largest needs in my area is that of washing machines.

Credit is largely about risk. Brighthouse mitigate that risk by holding those with the least over a barrel.

Short term access to credit? Payday loan companies, gone bust. Good. Next one to go will be cash converters. If anything good can come from this pandemic, it will be the final countdown for companies that are nothing short of being bullies.

Purpleclownsuit · 27/03/2020 18:56

I hate second hand always being trotted out as this perfect option. When you buy second hand you have no idea how well it’s been looked after or if parts have been fixed by some dodgy chancer or what kind of rough treatment something has been through. Maybe I’d rather pay more overall and have an appliance that I know the history of and that I know has an almost certain chance of longevity rather than taking risks with second hand ones.

Sonichu · 27/03/2020 18:56

"revelling in the misery of others who are about to be unemployed is a fucking shit thing to do

There hasn’t been any revelling. I just don’t have much sympathy. Inflict misery, don’t be surprised when you reap it."

Oh the irony of this post.

lyralalala · 27/03/2020 18:57

Here's just hoping the likes of social workers take things like "wash your clothes in the bath and use a kettle to make pot noodles" as being acceptable when people who are properly on their arses have them breathing down their neck.

Not everyone has parents they can run home too (mine are the reason I was being watched like a hawk in incase I became like them). Benefits and low paid jobs don't give you any wiggle room when the cooker and machine go at once so the £5 a week forever model was the only option for a lot of people. Care leavers, people fleeing abusive relationships, and in the next year or two people who've been fucked over by a virus.

Some people just don't have a clue.

bd67thSaysReinstateLangCleg · 27/03/2020 18:57

@Port1aCastis

I moved back to my mother to escape an abusive relationship. I'm on the same planet as the rest of you.

That's what the oh so amazing credit unions do.. Child Benefit loans. Money, meant to give kids a standard of living, is taken by the credit union every month as payment for a loan taken by the parents.

Oh dear, "what about the kids" from someone who doesn't understand child benefit or the child benefit loans used by some credit unions.

Child Benefit is not ringfenced and parents can choose to waste it. The parents can spend CB on whatever they want: school uniforms, boiler repairs, a trolleyful of booze, a new TV when the old one is still fine, you name it. The parents can already choose not to spend CB on the kids.

Credit Unions are not magic money trees. If debtors default, the money they should have repaid is lost. If this happens often enough, the credit union will be forced to put interest rates up to cover losses or else become insolvent, preventing future affordable loans to those in need. Having money from a third-party (e.g. employer) bypass the debtor's bank account and be paid straight to the creditor ensures that the loan is repaid. PAYE taxation works this way: you owe the Govt a debt called "income tax" and they collect it directly from your employer without it touching your bank account. But, the CU cannot deduct the debt from the debtor's paycheck without serious adverse consequences to the debtor, because...

Getting a debt repaid from a debtor's paycheck requires a county court judgement. A CCJ is something that marks you as a "bad debtor" for a long time and is only issued to someone who has already defaulted on the loan. It cannot be set up as the payment of first resort, even at the debtor's request.

Getting a CU loan repaid through CB guarantees repayment without a CCJ. This keeps interest rates low and means that the family repay the smallest amount possible, maximising the money available to them to care for the children in the long-term.

Jobseeker19 · 27/03/2020 18:57

Brighthouse makes you poorer in the long run and their are options.

For washing machines you use your friends washing machine until you can save up or you wash by hand until you can save up.
Free cycle, gumtree and Local Hardship Payments.

I've been really broke living with a drug abuser who used to steal my benefits money and I still found a way to get what was needed.

We went without as children because my mum was paying off so many loans with brighthouse

There are also charities that help families.

Absentwomen · 27/03/2020 18:58

What will they do about the people who have credit with them? Most of my best friend's stuff comes from them

Your best friend should wait for the administrators to take over, then head to Debt Camel/MSE and/or speak to step change to set up an affordable repayment plan.

x2boys · 27/03/2020 18:59

I have never used bright house but can see why people do ,lots of people don't have a few hundred quid to buy a new washing machine when theirs breaks or a,good credit rating to buy at a reputable store ,yes you can buy second hand but if you do you take your chances ,I have bought two reconditioned. Washing machines the first lasted 3 months, the second I bought in October and fingers crossed it's fine but has excessively long washes I think lots people in here live in a middle class bubble and have no real understanding of what it's like to not have a lot of money

category12 · 27/03/2020 19:01

I hate second hand always being trotted out as this perfect option.
Of course secondhand isn't a perfect option - but if you can't afford new, you can't afford new. For years and years I had hand-me-downs and refurbed things and freebies, all mis-matched and sometimes a bit crap - but I got by with it and gradually upgrade stuff when I can afford to.

...that's assuming people have a car
Indeed, but most people know someone with a car they could ask for a favour.

Jobseeker19 · 27/03/2020 19:03

Lool at the price mark up

To be delighted that Brighthouse is about to go bust?
To be delighted that Brighthouse is about to go bust?
To be delighted that Brighthouse is about to go bust?
june2007 · 27/03/2020 19:04

Purple clown not every one has the choice. And if the choice is get second hand (perhaps for free) Or pay over the odds on a long term debt then I know which one I will go for.

AnotherMurkyDay · 27/03/2020 19:04

Because a job at Tesco is an automatic route out of poverty.

There's a difference between poor and unemployed there's a difference between unemployed and available for work

WaxOnFeckOff · 27/03/2020 19:05

SciFi, i'm not missing the point. The point is that it's incredibly hard to save when you are poor as you have no financial resilience, no other way of getting money, it's not easy to ring-fence savings for a specific purpose when another issue arises that means you need the money for something of higher priority. The boots can only be replaced when they are the highest priority for the money you have. that is never going to wait until you have say £50 for the decent ones. That money will be long gone on something else and it will then be back to square one. The boots will only be the biggest priority when the only alternative is to be barefoot.

I haven't read the story, but I lived in that scenario most of my childhood.

category12 · 27/03/2020 19:05

lyralala, as long as you keep the kids clean and fed, social workers aren't going to be worried. It's hard work and a bit shit, but spiral of debt for shiny new things isn't a better option.

Purpleclownsuit · 27/03/2020 19:08

Purple clown not every one has the choice.

My whole point was that brighthouse going under takes away the little choice poor people have in getting a new appliance rather than a potentially dangerous or breaking second hand one. So yeah, I kind of got that! Hmm

lyralalala · 27/03/2020 19:09

@category12 I hope that's true for people now. It certainly wasn't the case 13 years ago. I had 4 days to get a cooker and a machine or more meetings would be had to discuss if the home life was "starting to slip".

People in shit situations ofted face harsher judgements than those not as well, that is a factor. The difference in the way people look at me now (nice house, nice clothes, good life) compared to then, even though I'm the same person and same parent, is like night and day.

Brighthouse, well their previous incarnation, were my saviour. I couldn't afford a repeat of the second-hand cooker that lasted only 4 weeks as had happened before.

Some people don't have back up other than shit options.

WaxOnFeckOff · 27/03/2020 19:10

or you go to a laundrette, while you save up the money to buy a refurbed one.

the problem is that the cost of using a launderette is probably higher than paying the minimum to brighthouse and hoping for the best. And what are you supposed to save when you are paying around £10 for every wash load at the launderette.

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