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Price cap for rent-to-own sector - MSE News

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Vulnerable customers who use rent-to-own firms will not pay more in interest than the cost of the original item from April, as part of new rules announced by the financial regulator today...
Read the full story:
'Price cap for rent-to-own sector'
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  • Clive_WoodyClive_Woody Forumite
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    No doubt this will see a decline in TV/washing machine sales as these companies become more selective who they sell to, to try and avoid the non/late payers who eat into their profits.

    This is great in theory but I suspect it could well drive these companies out of business which will then restrict where many people, on a limited budget, can buy new tech/white goods. Very much like cracking down on the pay day loans, morally the right thing to do, but not really offering an alternative for those who depended on them (no I'm not suggesting people depended on having a new TV every couple of years).
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • glider3560glider3560 Forumite
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    All they'll do is bump up the original item price to cover the lost interest.
  • TakmonTakmon Forumite
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    glider3560 wrote: »
    All they'll do is bump up the original item price to cover the lost interest.

    That shouldn't be possible...
    Under the new rules, the FCA will also require firms to benchmark their prices, including delivery and installation but excluding any add-ons such as warranties, against three mainstream retailers.
  • SnowTigerSnowTiger Forumite
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    glider3560 wrote: »
    All they'll do is bump up the original item price to cover the lost interest.
    Takmon wrote: »
    That shouldn't be possible...
    Originally Posted by MSE Article
    Under the new rules, the FCA will also require firms to benchmark their prices, including delivery and installation but excluding any add-ons such as warranties, against three mainstream retailers.

    Doesn't that mean they'll have to compare their prices with other retailers, rather than not being able to charge more than, say, Argos would for the same product?
  • SystemSystem Forumite, Community Admin
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    I've seen the prices quoted on the BBC article for what they'll be with the cap and you're still paying MUUUUCH more than you could if you walked into Currys and bought outright. An Indesit 60cm Fridge Freezer you can buy from Currys today for £240-£400 will be £1362 under the cap.

    _105901300_renttoown-nc.png
  • edited 6 March 2019 at 1:00PM
    grumblergrumbler Forumite
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    edited 6 March 2019 at 1:00PM
    I wonder what sort of TVs and washing machines these 'vulnerable' customers rent-to-buy...


    Is it 24" TVs under £100 and basic washing machines under £200?
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
  • SystemSystem Forumite, Community Admin
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    They're not top end, in fact they're not even middle standard stuff. Cheap Acer laptops, budget brand TVs. The fact the fridge freezer is Indesit gives you an idea of the quality of stuff they're selling on tick.
  • grumblergrumbler Forumite
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    Well, I asked only because I remember what appliances in BrightHouse in my town were aimed, I guess, at the same 'vulnerable' customers.


    Now I checked randomly rent2buytv.co.uk and yes, I see some basic stuff there, but I also see Panasonic TX49FX700 4K for £600 (other retailers).
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
  • edited 12 March 2019 at 12:38AM
    grumblergrumbler Forumite
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    edited 12 March 2019 at 12:38AM
    Is it time to cap the cost of mortgages then?
    For a 25-year fixed-rate mortgage it's 6.4%.

    I know, you can get it cheaper now, but FCA is supposed to be consistent and proactive.
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
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