Proposed cap on rent to own firms

The Financial Conduct Authority has announced a proposed price cap on rent to own firms. Subject to consultation this will come into force on 1st April 2019.

Rent to own firms often charge vulnerable customers much more than other retailers for household goods, sometimes up to 4 times the average retail price.

 Paul Hackwood, Director of the Just Finance Foundation responded to the news:

 “By putting a cap on the rent-to-own charges, the Financial Conduct Authority has made another welcome step towards addressing the current unfair credit climate that harms some of the most financially vulnerable people in the UK.

 The Just Finance Foundation was set up in response to Archbishop Justin Welby’s call to help find solutions for those struggling with debt and this new along with the limits on payday loan interest rates shows that the regulator is taking problems with high-cost-credit seriously.”

https://www.fca.org.uk/news/press-releases/fca-proposes-introduction-price-cap-rent-own-firms-protect-vulnerable-consumers-high-costs

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