BrightHouse to offer new loan where customers pay almost double what they borrow
Summary
BrightHouse customers are bound to be slapped with an interest rate that would see them having to return double the money they borrow as the firm increases its charge to 149 percent. The hike comes as part of a major shake-up of the rent-to-own firm that will see the axing of 30 outlets and 350 people losing their jobs. The loans are calculated using simple interest rather than compound and those wanting a BrightHouse service will need a have a bank account. BrightHouses staggering interest rate prompted calls for the Financial Conduct Authority to put a price cap to cover medium-term loans. Sara Williams, founder of the DebtCamel website, made the appeal as she told The Sun the 18-month loan will be hard-hitting for customers as "theyll be repaying a lot more than the amount you borrowed".