It has been well noted recently that one of the healthiest areas of lending is ‘buy now pay later’ finance available on the high street. People taking advantage of low or no interest deals are shopping prudently are making their cash go further by spreading the cost of high-value essentials such as sofas and white goods over a period of months. With the downturn in high-street spending, it seems that every retailer is getting in on the act and offering tempting finance deals.

But what if you didn’t have the pick of these retailers? If your credit history (or lack of), the fact you were on benefits or your age prevented you from applying for the best deals available?

You may turn to a specialist rent-to-own company, a company that rents all sorts of goods from games consoles to plasma tvs with pay weekly, monthly or upfront options. A company such as BrightHouse. With 179 stores so far, it’s the biggest such chain in the country.

The trouble is, it’s not exactly a cheap option, this chain offers an eye-watering 29.9% APR and that doesn’t include extras like the optional service cover which most customers take out. In the end, you may up paying two or three times the cash price for the item.

With buy now pay later becoming ever more popular during the credit crunch, BrightHouse took advantage and, during the spring, ran an eight-week intensive marketing campaign including TV commercials and a leaflet drop and employed- for the first time- TNT’s Home-in Targeting postcode modelling tool for precise targeting. It worked, with the chain thriving and planning on adding 20 stores during 2009.

BrightHouse head of marketing Alan Beesley said. ‘Brand awareness of BrightHouse has grown rapidly thanks largely to our TV activity, which comprises of advertising and sponsorship of the Trisha Goddard Show. As we continue to open in new locations across the UK our highly targeted spring marketing campaign will support our growth by promoting the brand as a customer-friendly weekly payment store.’

With such an increase in awareness however, has come an inevitable rise in unhappy customers. The company recently hit the headlines when it was investigated by BBC radio 1’s Newsbeat programme.

Complaints had been made to the BBC from customers claiming that BrightHouse used threatening, bullying and rude behaviour towards them if they fell behind on payments. Customers were apparently ‘hounded’ by calls from staff urging them to borrow money from friends and family, had employees turn up on their doorstep trying to talk their way into house to repossess goods the day after a missed payment and threatened with police action.

Technically, on any rent to buy or buy-now-pay-later scheme, the item doesn’t belong to the customer until the final payment is made, and goods may be repossessed if payments fall into arrears. However, there are very strict guidelines governing how companies can do that. Without a court order, NO ONE can gain entry to your home to repossess goods.

The many complaints seem to be backed up by ex-staff who have claimed that talking their way into houses to reclaim items was exactly what they were encouraged to do. One former employee spoke of taking playstations back just before Christmas, women crying and even removing goods from a dead woman’s home.

BrightHouse director Hamish Paton denies that’s how the company operates although he didn’t want to discuss individual customers. He claimed that 96% of customers are satisfied with their service and that repossession is a last resort- goods only being taken with the consent of the customer. He also said that if guidelines weren’t being followed, he apologised and that he was keen to put any less-than-perfect service right.

Chris Tapp director of charity Credit Action is keen to have the company investigated, as he’s seen an ‘enormous’ rise in the number of people getting into difficulties with this type of company. With a staggering 40% of BrightHouse customers receiving state benefits, it seems that number may keep rising.

Newsbeat have forwarded on details of its investigation to the OFT who said they are looking into the complaints.

Although weekly payments may seem small and affordable, just remember that the items are only ‘rented’ until the final payment is made, and it may end up costing a lot more in the long run.

24 Comments

1. Gail Buckle October 27th, 2009 8:09 pm :

   I totally agree that brighthouse is a rip off, I am constantly been harassed by them for missing a payment and when I pay double I am charged extra this company should not be allowed to trade as it rips off customers. If I had known what this company was like I certainly not have done business with them, I would have gone without.

2. julie November 21st, 2009 7:42 pm :

   I agree i too am constantly harrased by this company i am disabled and of ill health oftern in hospital so i miss payments occasionally, but always catch up straight away you get charged and i have had them turn up at my door with a van saying they are going to take items away, i wish i hadnot bothered with them, i am now at the stage of saying take it just to be rid of them, its so stressfull, these people are so nice and helpful when they are getting you to take out an agreement as soon as you do they turn, no longer helpful and certainly not nice, Rip Off Merchants. is all you can say about them and bullies.

3. James November 26th, 2009 3:25 pm :

   Just to add my 2 pence worth. I am a brighthouse customer. Just to stick up for the company, no one forces you to sign an agreement and buy from them. When I signed up they explained my contract, and even pointed out that should I go late I would get late charges which I accepted. All these people that blast brighthouse all have one thing in common, they dont pay there bills on time. It is a weekly payment account, if you miss you expect to get a call to establish when you will get your accoutn up to date, whats wrong with that, its only like missing a payment on your credit card and getting a call from the bank? If you dont pick up the phone and speak to the company then there gonna keep calling you. Just to put another point across as well, for all those unhappy brighouse customers out there, they can return there prducts at any time, if they read there contract and had taken out the companies service cover.

4. Anthony Gould December 7th, 2009 9:46 am :

   Obviously…”James” is an employee of Brighthouse, which is apparent from his comments. Does he not think it is obvious that there are so many people dissatisfied with this store. In January “THREE EMPLOYEES” of this store were taken to the local Magistrates Court of the town where they were employed and charged with “BURGLARY” and theft after stealing from a local shop after trading hours. One of these “STAFF MEMBERS” was even a “GOVERNOR” in a school. so much for “BRIGHTHOUSE” being so good. I Welcome your comments James…..

5. Nicki December 11th, 2009 5:48 pm :

   Just to follow on fron James’ comment, i am a Brighthouse customer and I have NEVER missed a payment!!! I am very peeved with BH due to miss selling and blatant lying from one of there sales advisors. I do not need DLC as I have my own contents insurance which covers HP items, in the past my cover note has been fine as evidence but on one occasion I was told I needed written proof from my insurance company that they cover Hp items. This was a lie!!! Im am guessing so she could hit her targets!!

   I contacted head office who investigsted but guess what, it was my word against theirs!!! Case closed!! I then went to the Ombudsman who sent BH a letter on my behalf, Within 2 weeks I had someone from Caversham agreeing to refund all the DLC we had paid due to this miss selling. The cheque is clearing as i type and it is a nice sum just before christmas.

   So no James, not all the customers who have problems or “blast Brighthouse” have problems with paying. They rip off customers, miss sell to hit targets and the after sale service is terrible!!

6. dave December 26th, 2009 9:13 am :

   I am a brighthouse customer and all i can say is watch this space, I cannot believe in this day and age a company like this can trade. I have been to my local bbc radio station and they are well aware of this company, I am going to get a website set up so people can forward me there comments about this company, then i am going to take this company to court, i am not going into this with my eyes shut, i am a very serious intelligent guy, who feels that someone needs to stand up to these vultures, i cant comment any more as i am compiling a file, just watch this space, I WILL MAKE A DIFFERENCE.

7. loo January 1st, 2010 11:42 am :

   why do people go to brighthouse ?? well most because they have a bad credit history ie havent paid there bills (bumped other companys)well i do pay my bills so dont need to go to such a place with high interest, as for the people on benifits state benifits are for food clothing and living not sitting with a large screen t,v or a playstation 3 this is my tax paying money goes to. SO PAY YOUR BILLS ON TIME AND YOU WONT GET ANY CALLS OR PEOPLE AT YOUR DOOR, and for the record i dont work for them. but i do have a job work hard and pay my bills on time.

8. dave January 6th, 2010 12:13 pm :

   go to google an put britehouse osc an read all that get Optional Service Cover and Damage Liability Cover taken of get home contents insurance if like me i pay 68 every 2 weeks to (bh) this will go to 30 some if taken off an i pay 15 for home contents insurance a month witch i just got . so half of 2 week payment 30 some add half of 2week payment 30 some that will be taken off (bh) that 60 some a month so do the maths i will save 45 an bit more a month

9. dave January 6th, 2010 12:32 pm :

   You should consider cancelling any “Optional” Service Cover policies you have now! Because:

   a) You can return the goods, if necessary, without penalty if you have paid more than half the agreement total. You do not need an expensive insurance policy in order to do this. b) The service cover is often applied automatically without giving you the option to choose whether you required it or not, and

   c) the service cover is extremely over-priced (and totally unnecessary as you already have statutory rights), plus it represents very poor value for money when compared to a typical manufacturer’s own extended warranty as the example below shows…

   Extended Warranty direct from ACER for a 15.4” Laptop – Available upon registering a new ACER product, or at the end of the manufacturer’s 12 month guarantee period

   A single one off payment of £49.99 which provides an additional 2 years of cover to the initial 12 months guarantee period, giving a total of 3 years cover. This cover includes collection and return, all parts and labour, repairs within 5 days or a brand new replacement product if not completed within 28 days.

   Caversham Finance (Trading as BrightHouse) “optional” service cover

   104 weekly payments of £5.95 (total £618.80) providing service cover for the 2-year duration of the agreement. As ACER guarantee all new products for the first twelve months regardless, this figure only represents one year of actual extended service cover. The cost of this cover is extortionate and, quite simply, cannot be justified.

   Of course, “Optional” Service Cover isn’t really service cover at all. As we’ve already established, all new products are subject to a 12 months manufacturer’s warranty, (which, of course, is in addition to your statutory rights – more about that later…) and any volume purchaser like BrightHouse will be able to negotiate massive discounts with outside service agents for any repairs that may occur at other times. No. “Optional” Service Cover is just a thinly disguised payment protection plan that HUGELY inflates the overall cost of the product, and protects the interests of BrightHouse and NOT you!

   BrightHouse also appear somewhat confused over the word “optional”. According to their own terms and conditions, “optional” service cover is an “option” to purchase at the time of the initial agreement, and cancellation thereafter will require 7 days notice. However, BrightHouse staff will tell you that “optional” means the option not to purchase the service cover can only be exercised at the time of the initial agreement and, furthermore, cannot be removed thereafter!

   This is total nonsense. Service cover is optional and can be removed. Of course, any attempt to remove it will invoke fierce resistance from BrightHouse! Local store managers, under pressure from their area managers, will have stringent sales targets to meet, and the revenue generated by “Optional” Service Cover policies is vital to them.

   You should also be aware that BrightHouse has the right to terminate your “Optional” Service Cover policy with just 7 days notice to you. They have been known to apply this clause if an item is deemed “beyond economic repair” leaving you considerably out of pocket (and left with nothing) when this happens towards the end of an agreement. In contrast, a typical manufacturer’s own extended warranty would, at least, result in a refund of the premium paid.

10. dave January 8th, 2010 1:50 pm :

    James November 26th, 2009 3:25 pm :

    I am a brighthouse customer. no one forces you to sign an agreement that is a lie. It is an agreement is put in yore face u are told noting about osc an if u dont pay the same day yore stuff will be taken people that has bad credit an low income thay pray on cos that have no chose like me

11. b whitehouse January 10th, 2010 7:17 pm :

    i have dealings with brighthouse and someof the staff are very good its when the manager gets invoved the rude remarks and nastyness starts they must be on a bonus

12. thomasroulston January 13th, 2010 3:18 pm :

    I am a customer of 15 months, and never missed a payment, until my pension was late , and all I hve had is threats, phone calls saying they will come and repossess my goods, even though I have paid more than two thirds of cost of my goods, they might frighten some of the senior customers they have, but they have obviously not met any one who will stand up to them, and I am hoping the chap who is compiling a file contacts me, I will gladly support any action he may suggest.

13. thomasroulston January 13th, 2010 3:21 pm :

    To the gent who is compiling a file, please get in touch with me any time , my e.mail is there, so lets take a stand against these vultures.

14. LOU.G January 16th, 2010 8:14 pm :

    RIP OFF!!!!!

15. admin January 17th, 2010 8:48 am :

    We have a copy of Dave’s email address – if anyone would like it please use the contact form. Also, let us know when the website is set up and we will link to it.

16. Jason January 24th, 2010 2:03 am :

    I have been with brighthouse for some years now with a very good payment record. i was taken ill in november 09 had to have an operation and to this day i am still very ill. i almost died in hospital and my brother missed one payment for me as my family was at my bedside. when my brother went to pay on monday they would not take my normal payment of 58.65 they wanted 138.79 . when i was allowed to use the phone i called them from my hospital bed they was very rude to me did not care about my health they told me to pay or lose my goods i wrote to head office and called them they did not care. the just kept on say as i said you need to talk to the store not us. i then waited 3 weeks for a reply from head office and all they said was contact your store. they still will not take my normal payments until i now pay all late fees what they put me in. and on the 21st off jan 2010 2 guys came round my home asked for my name i told them he put his foot in my door way came in and took My goods. i lost all my money too

17. Jason January 28th, 2010 12:46 pm :

    I would like to give you all an update. brighthouse have there goods back but i still wanting me to pay it has got to the stage where they are harassing me even following me in the high street and locking at my door 4 times a day. i am now taking legal action against them as the police are involved and my legal lady as it is a joke now they have aven be to my mothers home who is 68 and disabled. please beware off brighthouse they are scum and bullys.

18. michelle turner February 1st, 2010 6:46 pm :

    brighthouse are legalised loan sharks. they are bullies and liars and thieves. optional service cover is not needed on any item, dlc however is, you will be told that you cant have the goods unless you get osc, this is complete rubbish, if after you have signed your contract then dont want your service cover you can write to them giving them 7 days notice to remove it and you can also claim any money you have paid into osc back, they will bully you but dont let them, my settee to buy outright from bright house is 1471. a chargew of 13.58 over 156 weeks, then add your optional service cover at 3.40 per week, and your damage liability cover at 2.55 per week your total weekly payment arises to 19.53 a week therefore your balance at the end instead of bieng 1471 is now a staggering 3046.68!!!! if you miss a payment they will hound you, your friends and your family, they will tell you they will send bailliffs when in fact they are just people that work in the store, they cant send a bailliff unless they apply to court in which case the court will inform you, bright house never take anyone to court. ever. even if they did and the judge did give them a repossesion order, they still cant reposses your items or enter your home without permission, all they can do is reposses whatever is in a public place. its all bullshit, they frighten mothers children elderly etc when in fact they cannot legally touch you, they no if they take you to court the judge will seethe contracts and the overpriced interest rates and if anything order you to pay bare minimum anyway. these people should not be allowed to operate anywhere but untill we stand up to them then nothings going to change. if everyone who has an account with them just suddenly stopped paying then they would go bankrupt and goodbye to money grabbing lying robbing bullys

19. Sarah February 3rd, 2010 12:46 pm :

    I have just had a run in with Brighthouse in Coventry. I have missed payments recently due to having a new job which requires me to travel. This means that I miss payments as I am not in the UK when the payments are due. I missed a payment on Saturday and as it is only Wednesday, have had 3 calls from them demanding that I call them. I did call them after not responding to the calls as I am not into bullying. When I did call them I was screamed and shouted at by the lady who deals with my account. I actually had to ask her to shut up so I could make the payment or I would end the call and they would not get their money. I was treated like someone who does not work, who changes my partner weekly and generally a chav. I can confirm that I have been with the same person for 10 years plus, have a stable job and do not have an asbo. Why is it then when I wrote to them asking them not to call me but to write to me am I still bombarded with rude calls and then subjected to being screamed at. I am very glad that I only have 9 weeks left and would NEVER recommend them to anyone.

20. Jason February 5th, 2010 10:14 pm :

    They are just bullys and they won’t right to you as you have profe they are being a bully. but i played them at there own game. even tho i missed a payment and they took all my stuff and was still giving me Hell to pay for the goods they took back calls after calls coming round my home. i got my self truecall and every nasty call they made to me was recorded. i am now going in to court and sueing them for all the upset they have caused me. so for anyone who is having brighthouse at there door or on the phone fight back. also i did install a covert cctv at door . we need to stand tall and get them closed down. i am going to be setting up a face book account and will be working on website with the legal team i have to help others . will post back soon when things are in place .

21. sharon February 9th, 2010 12:47 pm :

    bh are right rip offs think they can take my t v when iv paid 1300 pound off it thats more than its worth and they are not very sympathetic wi ppl iv bin a customer foer 5 yrs nw and never let them down and nw coz i carnt afford it no more thy get funny but theyl av t fight for it bk

22. carl February 13th, 2010 2:18 pm :

    Hi There,
    I bought a washing machine from bright house last July 2009 then a lap top, in September and then a bed in December. With each purchase i was told i had to take out damage liability cover and other cover , total payment with cover per week is 40 per week 25 for goods and 15 for cover.

    After watching a damming programme on the T.V. before xmas on there sales tatics it dawned on me i had been miss sold insurance as i had full cover with my house insurance.

    I phoned and complained and also wrote to cancel the agreements, i then carried on paying the equivelent without the insurance cover.

    The manager at the store i purchased the goods from said i had to resign the agreements and take in proof of insurance which i did.I then said i wanted to pay that weeks and the previous weeks payments.Without the insurance premiums on them, and he said that was not possible.

    And spoke to me in a condescending manner, i said there was absolutely no way i was prepared to pay the insurance premiums that i had been miss sold.I said to him i was prepared to pay for the goods only, he said no i owed two weeks and had to pay insurances, even though i had evidence of current house insurance. I told him i would take my complaint up with the O.F.T. and i would see them in court.

    I left the store without paying extremely angry at the unprofessional way i had been delt with. I was even more angry i had been ripped off in first place. to the tune of several hundred pound.

    Is there any way i can claim this insurance money back?

    Have i gone the right way about things what are my rights?

    I want to pay for my goods i have done everything by the book , when i went into the store the manager would not show me the original paperwork from my agreements.

    Can anyone help?

23. admin March 1st, 2010 4:05 am :

    Hi Carl,

    I would suggest a visit to your local Citizen’s Advice Bureau to discuss your case.

24. Nicola halliday March 15th, 2010 9:35 pm :

    I am totally gutted with brighthouse i have been a loyal custemer for over 7 year but this last year has been hell i got my self a new washing maching in may lat year everything was fine to start with then i fond out one of the so called BRIGHTHOUSE engeners hadnt conected the pipes wich lead to flooding now 6 months later yet more problems with yet the same maching now am left with a pile of dripping clothes and one mega flooded utility room will be getting in touch with head office first thing tommorrow

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