Bright House Loans

Update 20/07/2021: Bright House are in administration.

Bright House have brought in administrators. It seems like Bright House will eventually shut down. There will be no new rent-to-own or lending going forward, however if you have an agreement with Bright House this does not change and is subject to the agreed term.

Are you considering a loan with Bright House Loans? Or perhaps you already have one, and you’re looking for further information about the company.

Either way, we’ve compiled the most important, in-depth information about Bright House’s loan for you in this loan guide.

About – Who are Bright House Loans?

Bright Loans is a product offered by BrightHouse, a lender that has been in business since 1994.

The company offers loans from £200 to £1,000 with a fixed term of 78 weeks.

The loans are available in one of the local store outlets and once accepted, money can be deposited into their consumer’s bank account within four days.

Three payments are made on a weekly basis.

Find your best debt solution

This 4 question debt calculator will tell you if you’re eligible.

What is the total amount of your debt?

Cap on loan interest and other charges

The Financial Conduct Authority felt that it was necessary to introduce price caps on loan interest and other charges, in order to help protect borrowers. These caps include:

  • A cost cap of 0.8% per day on the value of the loan borrowed– this is made up of both interest and charges.
  • A cap on default fees of £15 – interest may still be charged after a default, but it cannot be more than the original rate of 0.8% per day.
  • A complete cost cap of 100% – you must not be asked to pay back more than 100% of the money you have borrowed.

The limits are relevant to the credit agreements which have an interest rate of 100% or over, and that should be either fully paid back in a year, or substantially paid back.

Other regulations were brought into place in May 2017 and according to these, there is an obligation for lenders to provide borrowers with information on their products.

This must be made available through a price comparison website, which should be FCA authorised. Borrowers must also be given a summary of the total cost of the amount they have borrowed.

UK Personal Debt 2021 Update:
The average interest rate on credit card lending bearing interest was 21.50% in May 2021.

(Source: The Money Charity)

What you need to know about the Continuous Payment Authority

You may find that you have been set up to repay the debt using a CPA. When a CPA is set up by the lender, it allows them to take money from your account to pay off the debt.

The regulations regarding the CPA have changed, and there is now greater protection for borrowers. These regulations state the following:

  • The lending company must not attempt to take the money from your account on more than two occasions. If it fails on the second attempt, no further requests can be made.
  • They cannot take a partial payment from your account to cover the debt. If you don’t have the full amount available, they must not take anything at all. You would be able to reach an agreement with them to take the repayments in partial payments, but unless you give them permission, they must not do this.

Are you unable to repay the loan?

If Bright House Loans UK have abided by the regulations, but you just can’t afford the repayments you have set up, you can take control of the situation. Also, Bright House Loans have to help you.

These are some rules that lenders must adhere to:

  • They must give you information on where you can get free independent debt advice.
  • They must hold off debt recovery for a period of time, while you reach an alternative arrangement.
  • Give you time to pay back the loan, without continuously contacting you.

Get help with your debt

If you are suffering from debt issues, and need help, there are many organisations who can offer this for free. These include:

References

CONC 2.1 Application

CONC 5.2A Creditworthiness assessment

CONC 13.1 Application

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
×