Published on July 5th, 2016 | by FinanceLoophole0
Can’t Pay BrightHouse Debt
What Can I do If I Can’t Pay BrightHouse Store Bills?
The first thing you need to do is not panic! we can help you. Don’t let your BrightHouse debt get to you. The amount you owe, whilst no doubt a big deal to you should be easy enough to sort out as long as you follow some simple steps. BrightHouse calls itself a Buy Now Pay Later Catalogue store – it has received quite a bit of criticism recently due for its high interest rates and hidden charges. As a result some have dubbed it – a Buy now, regret later! store.
The first thing you need to do as soon as you have contacted your BrightHouse store to tell them that you are having repayment problems, is send them an Income and Expenditure statement. This will lay out for them the amount you have coming in and the amount you have going out. This will show how much you can afford to pay them back. Send your income and expenditure statement to BrightHouse (see contact details below).
Ensure that you include everything in your statement or you run the risk of paying more than you can afford. You need to make sure that if you can only afford £5 or £10 a month then that is all you should be paying to them. Don’t let them pressure you into paying more as they are not allowed to do that.
BrightHouse Debt – Caversham Finance Debt Collectors
A lot of people who contact us are most concerned about BrightHouse debt collection agency visiting them at home looking for money to pay the debt or reposes goods. The BrightHouse debt collection agency is run by Caversham Finance (the finance section of BrightHouse stores – ie. part of the same group) and people are worried they may make them sell their homes or reposes their property to pay off their BrightHouse store debts.
Let us reassure you that your not going to loose your home – the credit agreement you have with Brighthouse is not secured against your home.
The debt collectors they send round are not bailiff – they will normally just send people round in a white van who work for them. They cannot legally enter your home nor take any goods without you inviting them in. They just work for BrightHouse – the store front name for Caversham Finance. Only court bailiffs are able to take things by force to pay off your debts. BrightHouse can only do this by taking you to court.
If you can it may be better to simply return the goods you had from BrightHouse. This will often wipe out the outstanding debt. Then save up the money you would have paid them and get something secondhand – there is no shame in this and will help you survive you present financial situation more easily. This is not always an option as people we speak to have sometimes sold the items they had from BrightHouse to pay off their debts.
If you do refuse or are unable to pay you may find yourself being taken to court which can result in a court order which will allow bailiffs to enter your home and remove goods to pay for your BrightHouse debt. So do not delay as just ignoring it will not mean it goes away – chances are it will just make it worse for you and your family.
If you do get into arrears with BH you should seek independent debt advice before any court action is taken. It’s never too late to look for help so don’t despair. If you are having problems with your BrightHouse Store bills we can help you – just fill in this form with your details and we will get back to you.
BrightHouse Debt Management Plan (DMP)
DMP’s are informal agreements with the people you owe money to (your creditors) which reduce payments on your unsecured debts. Your creditors are very likely to accept any reduced payments you suggest if it is made through a trusted debt management company such as Bright Debt Solutions. This is likely to be a suitable way forward for most people with debts with BrightHouse Rent-2-Own stores as well as other outstanding debts (recommended for people with more complex debt situations).
- With a DMP you make one affordable payment each month which is sent to your creditors.
- You have help and support throughout your DMP.
Changing Your Mind About A Credit Agreement With BrightHouse
When you sign up to a credit agreement with BrightHouse – you are actually signing up to a credit agreement with Caversham Finance. After you have signed the credit agreement with them you still have time to change your mind and withdraw from the agreement, but be quick as you only get 14 days to withdraw. This time begins the day after you sign the agreement or 14 days after you first take delivery of goods you have ordered and have taken their finance for your purchase or sign the credit agreement whichever comes first.
If you return your goods within 14 days there is no charge. If you decide to return your goods after this time you will loose any payments you have made.
If you do decide to change your mind you can speak to them in store or call them on 0800 526 069 or write to their Customer Relations Team at:
BrightHouse Customer Relations
5 Hercules Way
Making A Complaint About BrightHouse
In the first instance you should report your complaint to BrightHouse – to let them put things right for you. This can be done in store – ask to speak to the manager.
BrightHouse Customer Relations
5 Hercules Way
Telephone: 01923 488200 (Monday to Friday 9am-5pm, Saturday 9am-3pm)
Fax: 01923 488202
They will –
- Confirm and acknowledge your complaint in writing
- Call you no later than 48 hours after you contact them
- Work with you on an amicable and fair resolution
- Keep you updated on progress
- Send you a final response letter, detailing their findings and any resolution
If you feel that you have been treated unfairly you may have cause to make a complaint to the Financial Ombudsman Service and/or the Finance & Leasing Association.
Write to: Financial Ombudsman Service, Exchange Tower, London, E14 9GE
Telephone: 0300 123 9123 (from a mobile) or 0800 023 4567 (from a fixed line)
Finance & Leasing Association (FLA) BrightHouse (Caversham Finance) is a member. You can find out more about the lending code of practice and how to make a complaint at the FLA website www.fla.org.uk.
Rent-To-Own Companies In The News
Companies such as BrightHouse are referred to as Rent-To-Own (or Rent 2 Own) companies – alternatively referred to as buy now, regret later? They are coming under increasing pressure to be more closely regulations due their high interest rates pushing vulnerable people into increasing amounts of debt.
It is believed that rent-to-own companies are filling the void left by payday loan companies since they were more tightly regulated in 2014. Many consumer organisations such as the Citizens Advice are supporting tighter regulations of the rent-to-own market.
Former Labour leader Ed Milliband is also calling for additional regulation.
I have been told customers can end up paying three times the worth of the item, or if they miss a payment or are late, the costs can spiral.
For an example of the costs involved – A mid-range washing machine on BrightHouse’s website costs £358. That seems OK on the face of it! But factor in the £55 for delivery and installation, along with the £136 warranty. Add to this the interest rate of a whopping 69.9% a year over three years – based on the firm’s own price model – the washing machine would cost a rippoff price of £1,092. These finance agreements similar to a hire purchase agreement are just not good value for money.
It is thought that people are not clearly being explained how much they will be paying for their goods or how long it will take to pay. The complex finance documentation and ‘add-on’ compulsory services can make it difficult to see exactly how much you will be paying back – so its easy to get into debt as many people are taking out credit agreements they simply cannot afford to pay. There is particular concern for vulnerable people on low incomes being targeted by rent-to-own companies. They do not offer good value for money and are pushing many households who already find it difficult to cope financially into debt. Maybe they should be renamed Rent-To-Debt companies instead – but they should definitely be better regulated.
It is estimated that in 2016 some 400,000 households use the rent-to-own sector. That is a 131% increase since the financial crisis of 2008. The biggest firms operating in this sector are BrightHouse and PerfectHome. Otehr companies you may think twice before using due to similar debt issues are payweeklystore, HomeBuy, catalogclub, BuyAsYouView, EasyBuy and UK HomeMaker.
So take care – you have been warned..
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Cant believe how much money i have spent on my TV and I still don't own it. I would recommend anyone to read the fine print before getting anything from BrightHouse