Justice For Many : Parasites On The Poor

Discuss news stories and political issues that affect carers.
Many carers / carees considered to be in the " 1 In 4 " ... close to / at / below the Official Poverty Line ... would smile a little at this one , for some , even cheer ?

http://www.bbc.co.uk/news/business-41732865
BrightHouse rent-to-own firm pays £14.8m in redress.


On my manor , at least one advertisment offering similar deals is dropped into my letter box every week.

Rent-to-own retailer BrightHouse has been told to pay £14.8m to 249,000 customers by the financial regulator, the Financial Conduct Authority (FCA).

BrightHouse will compensate customers who had cancelled agreements after one downpayment but had not been refunded.

It will also make payments to those who signed up to lending agreements that "may not have been affordable".

The FCA said BrightHouse had not acted as a "responsible lender".

The firm, which lets customers pay for household items such as washing machines and televisions on a weekly basis, has been criticised for its business model.

In 2016 a BBC investigation conducted by Ed Miliband, the former Labour leader, highlighted the example of a £358 washing machine that ended up costing more than £1,000.

BrightHouse has apologised to customers.

There is no need for customers affected to contact BrightHouse. It will write to 213,000 current and former customers by the end of the year, explaining what they are due.

Written off

Customers whose deposits BrightHouse failed to refund signed up between April 2010 and April 2017. These customers will receive an average payment of £27.

The second group includes those who took out an agreement between April 2014 and September 2016. These will receive an average payment of £147.

In the case of customers who were not assessed properly at the start of the loan who may have had difficulty making payments, BrightHouse will pay back interest and fees along with compensatory interest of 8% - provided they handed back the goods.

Those who kept the goods will have their balances written off.

Overhaul

BrightHouse chief executive Hamish Paton said: "We sincerely apologise to those customers who were affected. Our top priority is to ensure that they are reimbursed as soon as possible.

"We're absolutely determined that this doesn't happen again and have made significant improvements over the last 18 months. The FCA recognised this when they confirmed in April that they are minded to authorise our business, subject to specific conditions."

The company said it had been working with the regulator since late 2014 after admitting its assessments of customers' ability to pay. It also said collections processes did not always deliver good outcomes for customers, particularly those who were at a higher risk of falling into financial difficulty.

BrightHouse said it had overhauled its lending application assessment to ensure that future loans were affordable and that customers were treated fairly throughout the collections process.


The company was founded in 1994 as Crazy George and rebranded as BrightHouse in 2002. It has about 280 stores across the UK.


For the 1 in 4 , there are very few options available ... most come at a price at they simply cannot afford ... and parasites like this lot feature in the article know that only too well !!!

Explotation ... plain and simple !

Reminded me of the " Christmas Hamper " caper a few years ago ... thousands saving a few £s per week towards a Christmas hamper and ... hey presto , company goes into administration in that October ... 2006 !

http://www.thisismoney.co.uk/money/mark ... -bust.html
Back in the news overnight and today.

Does not make good reading ... does it ?

Most journalists will take this out of context ... advisors were involved , and are primarily to blame.

One does have a responsibility even if the decisions are made by their advisors.

UPDATE : Even certain politicians have jumped on the bandwagon !

WRONG target !!!
Another parasite gets their comeuppance :


http://www.bbc.co.uk/news/business-43209185

Doorstep lender to return £169m to customers.
A division of troubled lender Provident Financial has been told to pay almost £169m in compensation to customers.

The Financial Conduct Authority (FCA) said Provident's Vanquis unit failed to properly disclose charges on one of its popular repayment plans.

The Bradford-based company has also been fined £2m.

Provident announced a £123m loss in 2017 and plans to raise £331m from shareholders to meet the extra costs and bolster the firm's finances.

The FCA penalty is the result of problems with the Repayment Option Plan (ROP), on its Vanquis credit card.

While it was supposed to help customers manage their debt, the product put borrowers further into debt, rather than help them cope with debt woes, the FCA concluded.

Mark Steward, director of enforcement and market oversight at the FCA, said: "Most Vanquis customers chose the ROP to help manage their credit without realising instead that the product might lead to their indebtedness increasing.

"Vanquis has decided now to do the right thing by acknowledging the wrong-doing and offering to compensate its customers."

The FCA said none of the Vanquis sales calls that it had monitored had correctly informed potential customers of the charges they would pay under the ROP credit plan.

The scheme allowed borrowers to freeze repayments on their credit card debt temporarily. Whilst agents explained the monthly charge of £1.19 to £1.29 per £100 of credit, they failed to mention the additional interest rate that was charged on outstanding balances, which could range between 19.9% and 79.9%.

Vanquis has been ordered to pay back the interest payments to any customers who were not properly informed.

How compensation will be paid.

In most cases, Vanquis customers who are eligible for compensation will be contacted directly and paid automatically.

The company will use its records, and other information such as data from credit reference agencies, to make sure they have the correct contact details for these customers.

Contact will most likely be made through email, but possibly via phone or letter. If that customer was dealing with a debt collector, rather than Vanquis, then the debt collector will be in touch.

The compensation will be paid by cheque or, for those with existing debts on their credit card, their balance will be reduced.

Customers whose accounts have been unused or closed for more than two years will be contacted at their last known address, phone number or email and will need to respond before their compensation is paid.

Difficult year

Provident Financial offers short-term loans, collecting repayments at the door in person.

It ran into trouble last year following an attempt to restructure its employment model, replacing self-employed agents with full-time staff "customer experience managers".

However, the move failed. The company ended up issuing a number of profit warnings and its chief executive resigned.

As well as Vanquis Bank, Provident also owns sub-prime car loan business Moneybarn and consumer credit brand Satsuma.

A second FCA investigation into Moneybarn has not yet been resolved.

Provident Financial was founded in 1880 and provided loans through the Wall Street crash of 1929 and both world wars.


Poetic justice for many !

Modern day equivalent of the dreaded tallymen from Victorian times through to the Great Depression days.

Having said that , many are experiencing the modern day rerun of the " Great Depression. "
No justice yet ... this one dates back to the Stone Age ... only taken a few centuries ?


https://www.theguardian.com/money/2018/ ... ys-charity


High-interest 'doorstep loans' need to be regulated says charity.

Citizens Advice calls for curbs on home credit plans, which can charge interest rates of 1,557%


Britons saddled with high-interest “doorstep loans” should be given the same protection as people with payday loans and be saved millions of pounds’ worth of excess charges a year, said Citizens Advice.

In the UK, more than 1.6 million people use loans sold door-to-door – which are also known as home credit – and the market is one of the largest for high-cost credit, the charity warned.

Consumers typically end up paying back more than twice what they borrowed, the charity claimed. It said “irresponsible lending and the increased cost of borrowing due to refinancing, pushing home-credit users into a spiral of debt” was a growing concern.

A Citizens Advice report, entitled Doorway to Debt, published on 19 March, claims that extending the rules that cover payday loans to the doorstep lending market could save up to £123m in interest payments on up to 540,000 loans each year.
Payday loans are capped. Now let’s tackle other high-cost credit.

The charity said the Financial Conduct Authority’s curb on the payday loans market in recent years meant consumers were generally paying less for loans and were more able to repay them on time. The clampdown capped the overall cost of these loans to consumers, a measure aimed at preventing payday loan borrowers from becoming sucked into more debt.

“There’s no questioning the evidence, the FCA’s cap on payday lending has been a success,” said Gillian Guy, the chief executive of Citizens Advice. “But it’s time now to address the problems consumers are facing in the home credit market. Home credit customers are susceptible to the high cost of these loans because of easy refinancing, and there is currently no total limit on what they repay.”

In 2017, the charity helped 340,000 people with debt problems, an estimated 30,000 of whom were struggling to repay doorstep loans, some trying to cope with lenders charging interest rates of up to 1,557%.

Of those 30,000, the charity said, 48% had a long-term health condition or disability and only 32% were in work. Half had council tax arrears and 43% were behind on their water bill payments.

A spokeswoman for the FCA said: “Doorstep lending is one of the areas of high-cost credit we have identified as having potential issues. As we made clear in January, we have concerns about the impact on consumers who take out repeat loans. We intend to publish our conclusions in May and take action where we find harm.”


One article with a message that cuts through to the bone ?