Wednesday, March 22, 2023
British Herald
Advertisement
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion
No Result
View All Result
British Herald
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion
No Result
View All Result
British Herald
Home Business

UK markets watchdog proposes price cap on rent-to-own firms

Editorial Bureau by Editorial Bureau
November 22, 2018
0
UK markets watchdog proposes price cap on rent-to-own firms

FILE PHOTO: A worker operating a forklift moves washing machines in John Lewis' new distribution facility in Milton Keynes, Britain, September 6, 2016. REUTERS/Darren Staples/File Photo

74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

LONDON (Reuters) – Britain’s markets watchdog has proposed a cap on prices people pay for household goods like televisions and washing machines bought on “rent-to-own” credit from April next year.

You might also like

Swiss worry on size of new Superbank

“Guns and Roses” Bulgaria arms industry booms amid Ukraine war

Markets rebound ahead of Federal reserve decision on hike interest rate

Rent-to-own (RTO) involves consumers paying a weekly sum for three years, and they typically end up paying three to four times what they would have paid for the item in cash at the start.

“Under the proposed cap, credit charges cannot be more than the cost of the product. In addition, RTO firms will need to benchmark the cost of products against the prices charged by three other retailers,” the Financial Conduct Authority said in a statement on Thursday.

BrightHouse and Perfect Home account for over 90 percent of outstanding balances on RTO agreements in a market that has shrunk to less than 400 million pounds ($511 million), compared with 700 million pounds in 2015, the FCA said.

The proposed cap, which is being put out to public consultation, would save consumers up to 22.7 million pounds a year, the watchdog said.

“We want to stop consumers having to pay many multiples more than the price of a product on the high street,” said FCA Chief Executive Andrew Bailey.

The watchdog is also introducing a two-day “cooling off” period from February on the sale of extended warranties on items bought, effectively banning firms from selling the warranties at the point of sale.

RTO customers are among the most financially vulnerable, with only a third in work, most on low incomes and likely to have missed a bill payment in the last six months, the FCA said.

The FCA has already capped the interest rates that payday lenders can charge on loans, a move that was followed shrinkage in the sector and the collapse of leader Wonga.

BrightHouse, Perfect Home, and Buy As You View, which no longer takes on new business, have paid nearly 16 million pounds in compensation to 340,000 consumers for unaffordable lending and innapropriate charges and fees in the past.

The FCA said it has set the RTO cap to enable firms in the sector to continue to exist.

“We note, however, that firms in the sector are currently undergoing substantial changes, including the largest two firms making significant losses, and therefore firm exit is a possibility,” the watchdog said.

(Reporting by Huw Jones; Editing by Silvia Aloisi and Raissa Kasolowsky)

Share30Tweet19
Editorial Bureau

Editorial Bureau

Recommended For You

Swiss worry on size of new Superbank

March 22, 2023
UBS and Credit Suisse

The matchmaking of UBS and Credit Suisse will create the biggest bank Switzerland has ever seen. Some wonder if the superbank might be too big for its good....

Read more

“Guns and Roses” Bulgaria arms industry booms amid Ukraine war

March 22, 2023
Bulgaria arms trade booms on Ukraine war

Kazanlak, central Bulgaria, with its massive arms factories and endless rose fields, has lived up to its "Guns and Roses" nickname since Moscow attacked Ukraine. Bulgaria's thriving arms...

Read more

Markets rebound ahead of Federal reserve decision on hike interest rate

March 21, 2023
Markets rebound ahead of Federal reserve decision

Stock markets rose in Europe and Asia on Tuesday ahead of a Federal Reserve decision on another possible interest rate hike amid worries about global banks. Shares rose...

Read more

Bank shares, and oil prices sink in UBS buyout of Credit Suisse

March 20, 2023
UBS buyout of Credit Suisse

As UBS acquired Credit Suisse and assurances from financial officials failed to assuage investors alarmed by a new crisis, global bank shares and oil prices fell on Monday....

Read more

UBS shares plunge after Credit Suisse takeover announcement

March 20, 2023
UBS shares plunge after Credit Suisse takeover

After it was revealed that banking behemoth UBS would purchase its troubled competitor for nearly $3.25 billion in a deal arranged by regulators to prevent further market-shaking turmoil...

Read more
No Result
View All Result
Gareth Southgate challenges England to take ‘next step’ towards Euro 2024 glory

Gareth Southgate challenges England to take ‘next step’ towards Euro 2024 glory

March 22, 2023
JOE BIDEN

Joe Biden teases 2024 run at the awards ceremony for artists

March 22, 2023
China’s Xi, Japan’s Kishida end visits to Russia and Ukraine

Xi and Kishida end their visit to Russia and Ukraine

March 22, 2023

Tags

amazon australia boris johnson brexit britain British Herald CHINA Coronavirus coronavirus cases coronavirus outbreak COVID-19 COVID-19 Vaccine daily roundup Donald Trump Dubai expo 2020 england European Union facebook France germany Hong Kong ICC Men's T20 india iran israel italy japan joe biden lockdown London new zealand north korea Rishi Sunak russia south korea spain T20 T20 World Cup taiwan thailand Trump turkey UK Ukraine usa
British Herald

Top News in World: Read Latest News on Sports, Business, Entertainment, Blogs and Opinions from leading columnists.

CATEGORIES

  • Africa
  • Articles
  • Asia
  • Brand Feature
  • Business
  • Climate & Environment
  • Companies
  • Crypto
  • Culture and Lifestyle
  • Daily Roundup
  • Economics
  • ECONOMY
  • edel
  • Entertainment
  • Europe
  • Fashion
  • Finance
  • Financial Markets
  • Fintech
  • Health
  • IN UK 01
  • IN UK 02
  • Investing
  • Latin America
  • Market
  • Middle East
  • nsp
  • Oceania
  • Opinion
  • Pharma/BioTech
  • Politics
  • Reviews
  • Science & Technology
  • Sport
  • Sustainability
  • Tech
  • Technology
  • Travel
  • UK
  • Uncategorized
  • USA
  • Videos
  • World

BROWSE BY TAGS

amazon australia boris johnson brexit britain British Herald CHINA Coronavirus coronavirus cases coronavirus outbreak COVID-19 COVID-19 Vaccine daily roundup Donald Trump Dubai expo 2020 england European Union facebook France germany Hong Kong ICC Men's T20 india iran israel italy japan joe biden lockdown London new zealand north korea Rishi Sunak russia south korea spain T20 T20 World Cup taiwan thailand Trump turkey UK Ukraine usa

Herald Media Network Limited (UK). 2023. ALL RIGHTS RESERVED.

No Result
View All Result
  • Home
  • World
    • UK
    • Europe
    • Asia
    • Africa
    • Oceania
    • USA
    • Middle East
    • Latin America
  • Politics
  • Business
    • ECONOMY
    • Financial Markets
    • Companies
  • Sport
  • Fintech
  • Videos
  • Coffee Table Book
  • BH Magazine
  • More
    • Health
    • Entertainment
    • Science & Technology
    • Climate & Environment
    • Sustainability
    • Food and Travel
    • Fashion
    • Culture and Lifestyle
    • Articles
    • Opinion

Herald Media Network Limited (UK). 2023. ALL RIGHTS RESERVED.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?