UPDATE – in April 2022 the administrators said there was unlikely to be any money to pay any refunds to customers. See below.
On 20 March 2020, BrightHouse went into administration.
BrightHouse sold electrical appliances, furniture, computers and mobiles on hire purchase. Its customers made weekly payments, sometimes described as “rent-to-own”.
Coronavirus has meant that its 240 shops have had to shut and many customers are likely to be asking for payment holidays as their income has fallen and they can’t manage the normal weekly payments.
But BrightHouse’s finances were already precarious before Coronavirus. In February, it was reported that BrightHouse was “close to collapse” and it was said to be applying to the FCA for a Scheme of Arrangement that would let it limit what it had to pay in refunds to customers who had been sold goods on unaffordable credit.
With the new coronavirus problems this month, it is not surprising that BrightHouse has given up and gone into administration.
Some 172,000 people were buying an item from BrightHouse at the end of December.
Background – BrightHouse’s high prices
The FCA found that high product prices plus high interest and the cost of insurance and warranties meant a customer could pay £800 over three years for a fridge that would cost £260 on the high street.
This cost is very high for many BrightHouse customers – only one third are in work and a half have children.
BrightHouse hasn’t been checking properly that the credit it is giving is affordable. The FCA says a loan is unaffordable if paying it leaves a customer so short of money they get behind with essential bills or have to borrow more.
So customers have been making increasing numbers of affordability complaints. Brighthouse has said:
the level of redress claims from customers is putting increasing pressure on the available liquidity in the group.
Are you still paying Brighthouse for an item?
You may be struggling to pay the amounts even if you haven’t been affected by Coronavirus. If this is happening to you, contact BrightHouse using the form here http://www.brighthouse.co.uk/contact-us and ask for the payments to be reduced. Just say what you can now afford to pay.
You may be worried that the goods may be repossessed. This is VERY unlikely to happen.
Repossessing goods at the height of social distancing is going to be very hard. And I expect the administrators would much prefer to get reduced payments from you than have a lot of second-hand items to have to try to sell!
BAD NEWS – there will probably be no money to pay any refunds to customers
The latest administrators report says:
“it is unlikely that a distribution to unsecured creditors will be made.”
That is legal jargon for saying that customers who were sold items on unaffordable finance (“the unsecured creditors”) will not be paid anything at all.
Because of this, there is little point in making an affordability complaint now and I have deleted the section in this article that explained how to do this.
Dave L says
The fact that Grant Thornton are involved leaves me with no confidence. They are now a tainted brand with their incompetence and arrogance during the Wonga administration.
Jean says
What if you already have an affordability complaint in I’ve had mine in from last aug they sent me a letter over 4 weeks ago and said they would have a reply to me by last week phoned up several times over the last 10 days and was told the same thing each time they were still looking at it I had taken it to fos in January what happens to our cases
Sara (Debt Camel) says
I am guessing because they haven’t actually entered administration yet. But that is expected next week.
But I think it’s unlikely BH will uphold your complaint and pay you now. You are likely to be “an unsecured creditor” in the administration and get paid some percentage – possibly low – after many months, probably a year.
FOS is not allowed to look at complaints when a firm goes into administration so they will send it back to the administrators to settle.
not good news :)
Do you currently owe them any money?
Jean seymour says
If they go into administration could I have my payment reduces
Sara (Debt Camel) says
They will be going into administration – there isn’t really any doubt about that.
But even if they weren’t, you can get your payments reduced if they are unaffordable.
Has coronavirus impacted your finances? or do you think your current item ( or it more than one thing? ) was always difficult for you to repay?
Pam Sullivan says
Hi I got a TV from my local shop in Wigan just before new year, my payment is affordable but what I like to know is I have paid for the insurance and the repair plan ( if main board dies) they had since I purchased it, is my item still covered if anything happens to my TV .thank you
Sara (Debt Camel) says
If you look at the small print on what you signed, it may be provided by a separate insurance company – BH often used Caversham Insurance Limited. This company may not be affected by BH going into administration in which case the insurance carries on as normal. If an insurance firm fails, the claim process varies, depending on the firm and different parties involved, but there is normally better protection for insurance customers than for borrowers.
If the small print says the insurance comes from BrightHouse itself, you will need to ask the administrators.
You also have some consumer rights, see https://www.citizensadvice.org.uk/consumer/somethings-gone-wrong-with-a-purchase/claim-using-a-warranty-or-guarantee/.
That may all sound pretty unsatisfactory, but things will be clearer over the next couple of months and hopefully your TV won’t have a problem anyway!
Pam Sullivan says
Thank you for your reply, TV is covered with caversham so I am still for now covered,I don’t know if many of you got one but I received a text from BH to download a digital card to pay for your items at pay point shops which had helped me to still pay for my item.
Bob says
If it is an insurance policy which I think it may well be it will have FSCS protection even though the loan doesn’t. You should still be ok provided you are happy with the policy and you continue paying for it.
John says
Hi, I currently have an affordability complaint in with BH. I’m a single mum on Universal Credit. I purchased a sofa with a 2 year repayment term of £28 a week so between £90 and £114 a month depending on whether its a 4 or 5 week month. I’ve never missed a payment but have struggled to make payments as I receive £1050 a month to pay all my bills and sort my son out. I have 10 months left of repayments.
With the current COVID 19 pandemic and unable to leave home certain bills have increased so I’m worried how I’m going to cope now. Who would I speak to about reduced payments if BH go under on Monday and how would my credit file be affected? Is this even worth persuing now BH are going under or should I just try and finish the payments (not sure how yet)
Sara (Debt Camel) says
As your circumstances have changed because of the coronavirus, I think you should ask for a payment holiday for a couple of months.
It is worth pursuing the affordability complaint, it shouldn’t be much work for you, just let it run. the administrators will have to decide how to assess these complaints. If you win an affordability complaint any negative marks on your credit record are deleted.
Was this your first item from BH?
John says
Yes it was my first item. The sofa was £1150 and will cost over £2300 when it’s paid off.
Also who would I contact if BH go under?
Sara (Debt Camel) says
When the administrators take over – expected to be next week – they will change BH’s hope page to say they are now running the compant and how to contact them.
But I am 99% sure that they will say to carry on using the current BH contacts. Because the shops are closed, these are:
– complete the online form
– phone 0800 526 069
John says
Thanks Sara will see how this whole situation goes
John says
Thanks, should I just keep on to BH then with my complaint and get it settle by them? At the end of April it’s 56 days, do they have more time to look at this now?
Sara (Debt Camel) says
Well you cant send it to FOS.
The 8 weeks deadline us no longer relevant. BH May look at your complaint in the normal way but usually the administrators will stop that and come up with a new automated approach. Sorry but you are not likely to get a result for many months.
robin medlock says
If I decide I want to return a product under my agreement, will I still be able to do this. In other words will Grant Thornton honor the agreements we entered into. On the same terms. Plus will interest be frozen on our accounts when they take over.
Sara (Debt Camel) says
The terms you bought an item on remain the same.
That normally includes the interest that is being added.
Brenda says
wil I still be able to pay with my phone I have some guds nearly paid off in a few weeks thank you
Sara (Debt Camel) says
I can’t say for sure what will happen.
But I will be surprised if you can’t carry on paying using your phone as that is what you do at present.
They want you to be able to pay for your items so (a) they get the money and (b) you are another customer off their problem list to solve.
Norah waite says
So am I better stopping my payments as I have about 6 items and have been with them for years I put in a complaint but haven’t heard anything yet,and my financial circumstances had changed ,I need a holiday because of the circumstanced
Sara (Debt Camel) says
It sounds as though you have bought a lot of things from them AND you can’t afford the current repayments.
How much are you supposed to be paying a week? Have you asked for a reduction?
Norah Waite says
I pay 163 a fortnight
Gaz says
Am I right in assuming that is you have paid 75%fee now that they can’t take your items from you? Even if I hoped paying?
Sara (Debt Camel) says
Hi Gaz,
legally with any HP contract, if you have paid more than 1/3 of the total cost (this figure will be in the small print of the paperwork you were given when you bought it) the lender cannot repossess the goods ithout a court order.
BrightHouse may be operating a different internal policy on repossessions, but I am not familar with 75% being an important number. Two years ago the CEO appeared to tell a house of commons Select Committee that BH would never repossess… (see https://debtcamel.co.uk/brighthouse-never-never/) but I am not sure whether that has been implemented in practice.
Karen myers says
I am still paying my bighthouse but done know how when cant get to the shop to pay l.need a card to pay at shop pay point as l only get cash and not bank card mine a hole in wall card so only can pay cash
Sara (Debt Camel) says
I suggest you ask BH this using their online form
SUSAN ANDERSON says
i bought a suite from my shop last year 2019 and was led to believe it was brand new it is now falling apart and i was shocked when i phoned there complaints dept to b told it wasnt a new suite it had come from someone elses home and they are charging me 1100 for it. i have complained to no avail they have said it says on my agreement it is used even though i told them i could not see what i was sighning.even though the lady who served me in the shop says she ordered me a new suite
Norah Waite says
Mines was the same they said it was new I had to get a repair ,they wouldn’t let me change it as I wasn’t pleased I m paying thousands for a suite that was broke
Sara (Debt Camel) says
It may be hard to get this sort of consumer problem resolved with the shops shut and the company going into administration.
have you put in a formal complaint in writing and had it rejected and been told you had the right to take the case to the Financial Ombudsman?
David Sparrow says
I have had this problem but they just seem to brush it under the carpet I complained n complained but they didn’t listen and I ended up getting a new agreement out and lost 18 months of payments with nothing back they really dont care so when they dont get anymore money off me what are they gonna do nothing I presume
Suzanne says
I am making payments, many items almost paid, but I’m unable to get into brighthouse website to make a payment, can’t ring up and make a payment if go into store due to virus lockdown so how can i make a payment, I don’t have a payment card. Will administration contact me to let me know about payments, I don’t want to get behind.
Sara (Debt Camel) says
The BH website says:
“We appreciate the current situation will be very difficult for some of our customers. If you find yourself unable to pay please contact us by … completing the online form, or call us on 0800 526 069 and press option 2. In the meantime you will not be charged any late fees, interest on late payments or lose the use of your product during this difficult time.”
So that is good.
BUT if you have bought several things, are the repayments really affordable? Read the article above and think if you have a good reason to make an affordability complaint.
L Clarke says
Currently paying £76 per week but it was £94 about 3 months ago- should i stop my payments? Cash is short at the moment with covid, currently on easy pay but if i ring the bank and get a new bank card then they can no longer take payments off of me as they use the card number and expiry date to take payments- then call them to say payments unaffordable- only have 7 months left to pay on most items
Sara (Debt Camel) says
so you have two different things you could do – and you can do both if you want.
As your income has been hit by covid, you can ask for a payment break or reduced payments.
If you have had a lot of good from Brighthouse and you have always struggled to make the repayments, you can out in an affordability complaint. If you have borrowed a lot, it may make sense to stop payments now and say you want your claim assessed as the refund from that may be more than you currently owe.
L Clarke says
I have emailed them to say that i need to stop repayments as im being hit hard due to the covid pandemic, then i will go down the route of affordability complaint, thanks.
One last thing if i make my payments via easy pay which is where they take the money every Friday morning straight out of my bank- if i order a hew card which will have a new card number and expiry date then they will no longer be able to take payments anyway im sure?
Thanks in advance
Sara (Debt Camel) says
No, phone up your bank and tell them to cancel the direct debit or the continuous payment arrangement (CPA) to BrightHouse.
If you just get a new card, your bank may still debit money to that – this is not a safe way to cancel a payment.
KELLY THOMAS says
When u order a new card at the bank, tell them you have lost your current one. They will immediately stop any further payments from that card. Having found myself in this situation previously if BH try to take payment from the reported card it will be refused. Then normally BH call or text to say your payment has failed. Worked for me everytime!
Sara (Debt Camel) says
It may have worked but it is MUCH simpler to just phone up your bank and cancel the CPA (Continuous paymeny Authority) arrangement to BrightHouse. That is the simple way to do it. No need for a new card. It can’t go wrong.
Chris Bushnall says
I have 2 items from Bright house, a cooker and a tumble drier, now yes I have insurance from Bright house, now my question is as follows.
If a products develops a fault can we still get it repaired?
Chris B
Sara (Debt Camel) says
See my reply to this question: https://debtcamel.co.uk/brighthouse-administration/#comment-357505
Diane says
I have recently bought a washing machine from them, it was to be delivered last week but obviously got cancelled because of this lockdown, what will happen with this, will i still get it, or not, I have also made 2 payments on this, what will happen?
Sara (Debt Camel) says
I don’t know – sorry I can’t guess if they have one in stock and in that case if they will deliver it, or if they have to get one from their suppliers in which case no one is likely to supply them as they would be worried they wouldn’t be paid.
And obviously I can’t guess when the lockdown will end.
If you do get it, you may later have problems getting it repaired if BH is bust and it goes wrong.
You can cancel your order and would normally get a refund of what you have paid. But if they go into administration you may not get all your money back. which would be VERY annoying.
But perhaps better to make this difficult decision now to cancel and stop paying? Or you may have the same decision in another few weeks when you have paid them even more?
You could look at this website https://www.fairforyou.co.uk/ which is a bit like BH but the prices are better and the interest is lower – if you can get a washing machine from them that could be a better choice.
Diane says
Thanks, Delivery was arranged for the 18th of March, I just got a message saying Delivery has been cancelled due to current government guidelines regarding Coronavirus, so i really don’t know what to think, definitely won’t be making anymore payments until I know for sure, Thank you for your advice.
jemma summers says
I have been waiting since septber for them to swap my settee as it is so uncomfortable. I informed them as soon as it arrived and they just kept making up excuses. I went into shop 3 or 4 times as they said they was ready to swap it and there was always an excuse. So am I stuck with this one now? As I’m not willing to pay for something I don’t want
Sara (Debt Camel) says
Have you put in a formal complaint? If not, you should do this right away. It may not be easy to get this resolved, it will help if you have any evidence (emails?) of what you said in the shop or them offering to swap it.
Barry says
Had difficulty paying
Sara (Debt Camel) says
Hi Barry, are you saying you bought something from BH and it was hard to pay for it so you want to make an affordability complaint?
Margy walker says
I work in a pub so if no income until corona virus is over what do I do about my payments
Sara (Debt Camel) says
Hi Margy,
Fill in the online form telling them about your job and ask for a payment break until you are getting paid again.
They must be getting a LOT of these messages and it may take a while to process them all, so if BrightHouse is taking the money from your bank, I suggest you also cancel the Direct Debit or Continuous Payment Authority with your bank so your money is safe.
Frederick Ratcliffe says
Order a electric cooker last Saturday I’m waiting for my delivery it was too be delievered on the Thursday last week so ham I going to get it thank you
Sara (Debt Camel) says
See what I said to Diane in the comments above – she is waiting for a washing machine to be delivered.
Stephen Parker says
I have recently purchased a re conditioned washing machine used it 4 times now its broken and they say no workmen can enter my property to repair it {no one in our house as symptoms but i do understand this situation}. Also we have not made a payment yet due to promo credit but we do not know what we have to pay with brightcare,insurance etc no shops open and everything is automated.
Sara (Debt Camel) says
I suggest you talk to the Consumer Helpline https://www.citizensadvice.org.uk/consumer/get-more-help/if-you-need-more-help-about-a-consumer-issue/ about your rights.
Donna Parker says
I was struggling due to my son being severly ill n living in hospital n costing a fortune they would nt help never mentioned payment holiday i ended up sending all back they said they would stop late payment charge for 6 weeks 2 weeks later charges went on i wss called a liar n i was never told this
spencer taylor says
HI me and my partner have 4 items that were currently paying weekly for from BrightHouse were on Benefits but have always been able to make our payments and weve been able to afford them 1 of the items is due to be paid off in the summer I believe, what is the best course of action we should take with them now going out of business should we carry on paying as normal or should we try for reduced payments or should we stop paying altogether? what would happen if we did just stop paying would that affect my partners credit score?
We’re currently paying around £50 pound a week so if we could save some/all that money it would make a big difference to our family
Sara (Debt Camel) says
I can’t say what you should do, because that would mean sitting down and going through your household finances in detail. But I can make general points and you can work out if they apply to your situation.
My first thought when anyone living on benefits is paying £50 a week to BH is that it sounds unaffordable to me. Do you have other debts? Are you behind with bills (rent, council tax, utilities)?
spencer taylor says
We have a couple other debts that i built up when i was single that now thanks to the CAB were paying the minimum amount of about £15 a month on those couple debts so thats affordable for now and were all up to date on rent council tax and utilities
Sara (Debt Camel) says
how much do you owe to those other debts? private or social renting?
Anne rowe says
I have 2 items being paid for Brighthouse.One of the payments should be ending soon so will they altomatically stop this and secondly the money gets stopped each week from my bank so is it safe to continue with these payments.
Sara (Debt Camel) says
when you have paid for something, the debts to your bank account should stop automatically.
It is “safe” to carry on paying for your items. You still legally owe the money.
BUT if your income has dropped because of coronavirus, you should stop and ask for a payment break. See the article above.
AND if you have borrowed a lot from BH or you think the current payments have been too high to manage, you should think about making an affordability complaint. See the article above.
Debbie Darcy says
I am paying insurance for 2 items on top of my payments do I still have to pay this as doubt I can get my appliance fixed now if it breaks
Sara (Debt Camel) says
The administrators will have to clarify the situation about insurances. If you look at the paperwork you were given, it should give the name of the insurance company?
John Barnes says
If you have multiple goods with BrightHouse and they are now in administration can you now add the debt to any bankruptcy or debt relief order?
I know under the original terms that the items or debt rather wouldn’t count in insolvency but now that this is with an administrator does that change how the debt is viewed/handled?
Sara (Debt Camel) says
You could always include a BrightHouse debt in bankruptcy or a DRO, but there was a risk the item would be repossessed.
The terms remain the same … but in practice what is the chance of the administrators trying to repossess goods? The cost of the repossession may exceed the second-hand value of the goods in many cases, especially as there are no longer any shops they can be sold in.
If you have bought a lot from them, you should be considering an affordablity complaint unless your other debts are so bad that insolvency is inevitable… I suggest you talk to national Debtline on 0808 808 4000.
jacqueline says
I have 2 items from brighthouse which i am currently paying for. Previously i have had many goods over the years since 1994. I have submitted a claim and still wating an outcome.
Due to Coronavirus im struggling to pay them. I have a nintendo switch which i purchased from them about 2 years ago for my grand children. Also i have a new washing machine purchased last year. They zsked me if i can return the nintendo switch. I said no its with my grandchildren. They said all they can do is rewrite the nuntendo switch then i can pay half the amount weekly pzyment. But the washing machine they cannot do anything.
Is this right what they are doing rewriting another contract for the nintendo?
Sara (Debt Camel) says
so coronavirus has affected your income? and they aren’t letting you have a payment break?
when did you send them a claim?
jacqueline says
A claim was submitted mid last year 2019
Sara (Debt Camel) says
and have you sent it to the Financial Ombudsman?
April says
If you make an affordability complaint should you carry on paying or stop all together? I have just put one in I pay £86 a week and it’s just to much now and having to use my child’s dla to keep my head above water.
Sara (Debt Camel) says
Is this the only item you have bought from them?
April says
No I have loads with them been with them for many years
Rebekah says
I pay 55 pound a week I pay out of my child tax credit now the Coronavirus has hit my bills have piled up on me what can I do ? I’ve been with them years and the payments have always been a struggle for me as a single mum
Sara (Debt Camel) says
if Cornovirus has reduced your income or increased your expenses, then ask for a payment break
AND stop paying if you can’t afford it. If they are taking the money from your bank, phone your bank up and say you want to cancel the CPA (continuous payment authority) to Brighthouse.
AND if you have bought a lot and its always been a struggle, put in a very short email saying you were given unaffordable loans and would like a refund of the interest. See the article above for how to do this.
Rebekah says
Thankyou I have asked for a holiday for now and I’ve submitted a affordability complaint if I win the complaint will the interest come off my outstanding debt with bright house
Sara (Debt Camel) says
Yes it will.
T Ingram says
What happens I’ve got a cooker from bright house I’ve nearly paid for it , my husband died a couple of months ago I’m found it hard to pay everything they send me a letter last week as I missed one payment and they told me that I had to pay the interest as well as a late payment. What can I do
Sara (Debt Camel) says
I suggest you ask to be able to make lower affordable payments.
Karen says
Hi, I’ve had several items for a couple of years or so. Several months ago I stopped paying as I couldn’t afford it (£60 pw). People where coming to my door every week. Eventually they changed the payment to £30 pw but I’m still struggling with this, I’m a single parent and carer to disabled child, circumstances have changed due to coronavirus (no maintenance payments and increased costs being home all day). I’m not sure what my first step should be, should I ask for a payment holiday or affordability complaint? I’m worried if I stop paying I will have people coming to my door again, they told me last time they could come 3 times a week. Even if they don’t come now due to lockdown, will they start knocking on my door after lockdown? When I originally had difficulty paying, I had sent several emails asking for lists of payments and late charges as I wanted to make a claim, but heard nothing back, this was around last August. They had replied to other parts of the email but not the request. Any advice appreciated.
Sara (Debt Camel) says
I know this may all feel very difficult.
One definite thing is that you should ask for a payment break because of coronavirus. The regulator has said this yesterday:
“Due to the coronavirus (Covid-19) pandemic, the FCA expects lenders to provide appropriate forbearance to consumers who are experiencing … difficulty in keeping up with repayments. The FCA’s rules on forbearance state that firms should allow the customer reasonable time and opportunity to repay. This is applicable even when a firm is in administration.”
The other definite thing is that you should send them a complaint about unaffordable lending. You don’t need all the details from them, they have all that info, just send them a really short complaint as the article above suggests.
The difficult thing will be whether you should start making payments again in a few months when coronavirus problems have passed. I don’t think there is any point in worrying about that now. Do what you need to keep you and your son safe in this difficult time. Then come back here later and see how things have moved on?
P franklin says
I asked a question regarding my account with Brighthouse but no answer is showing maybe my phone ??? Please can you advise me i am a disabled pensioner who pays bh via CPA for my washer fire and loan
Please what do i do now do i cancel the cpa ? As it is a struggle especially now but i am worried if or will bh actually still get my payments i am confused with this administration thankyou
Sara (Debt Camel) says
Your repayments will still be going to your bBrightHouse debts.
If you can afford the repayments, you should carry on making them.They will be going to BH.
But it sounds as though they are too high for you to manage? If so, ask BH if you can make lower, more affordable payments.
If you have a bought a lot of things from brighHouse, you may be able to m,ake “an affordability complaints” to them as the article above explains.
P franklin says
Thankyou for the advice. I will contact them .regarding both.
Zee says
Hello,
I bought 2 items from BH- I have one more payment remaining for my laptop however for my TV I still have one more year to go.
Therefore I have sent an email to BH for a payment holiday and have had no response yet.
My question is what happens if I stop paying?
Sara (Debt Camel) says
Are you asking for a payment holiday because your income has been affected by Coronavirus?
Zee says
Hello Sara,
Thank you – Yes payment holiday- how long can I have the holiday for?
Thank
Zee
Sara (Debt Camel) says
that depends how long your income is affected for. I suggest you ask for a couple of months and say you will get back to them if your situation hasn’t improved at the end of that.
Zee says
Thanks Sara
I have emailed BH and awaiting a response.
My payment is due on 4th April.
What shoukd I do?
Thanks
Zee
Neal Morrison says
If something I’m paying for develops a fault, what is my options
Sara (Debt Camel) says
If you have paid for their warranty you may still be able to claim.
Steve says
Hi I have 2 items one a loan with Brighthouse can I get help as I can no longer afford full payments I’m on benefits
I did try ringing my branch but not helpful told me I still had to make full payments
Steve
Sara (Debt Camel) says
I suggest you send a message to BH using their form. Say why you are struggling (do you have important bills to pay?), say that you told your branch but they weren’t helpful so you want someone else to look at this. If you know how much you can sensibly afford, offer that as a payment. If you aren’t sure, you could call National Debtline on 0808 808 4000 and they will help you work out how much to offer to BH.
Steve says
Hi,
I got a email back saying they can’t help and to give them a ring to speak to them,only I’m not confident on the phone
I have put a affordability complaint in as well
Please advise
Sara (Debt Camel) says
This is why I think it would help if you can talk to National Debtline. They can help you work out a budget sheet which you can send to BH.
Had you bought other items before these two?
Steve says
Yes 7yrs. Till things changed this year
Sara (Debt Camel) says
OK, so that is another reason not to pay them now. First because you can’t afford the normal payments and second because if they owe you money for your affordability complaint then that can be used to repay the balance you owe – this is called “set off”.
Steve says
Thank one last thing I have a tv over half paid for can they pick it up
Sara (Debt Camel) says
They would need a court order. And what is the second hand value of that TV set? I doubt the administrators are going to want to get into the business of court orders, repossession and selling second hand goods…
Steve says
Hi again.
Been on the phone to bright house ,they told me I have to pay as it is business as normal and there is no such thing as a right to set off
All so informed me any late payments will result in collection of goods
They seem to me as if nothing is changing
Steve
Sara (Debt Camel) says
That’s what they want you to think!
Send them an email to customer.relations@brighthouse.co.uk with COMPLAINT as the title,.
Tina says
I have been with brighthouse for a long time still have a few items with them I really struggling now because of Coronavirus I’ve sent in an email for unaffordability issues and also filled in the online form asking for a payment break I was using continuous payment so have also instructed my bank to stop these with immediate effect I just want to make sure I have done everything correctly I have always made my payments on time to avoid late payment fees but doing so has left me with other debts such as council tax and water rates etc
Sara (Debt Camel) says
If you have sent an affordabilty complaint in and stopped the payments, that sounds like all you need to do at the moment.
Tina says
I got an email off them 3 weeks ago saying they would stop payments for two weeks that’s all then I should commence payments again it’s the third week now and received a missed call from them yesterday I have also received an email a few days ago completely dismissing my affordability claim as well and stating that I can no longer apply to the omsbudsman either it says something about them dismissing the affordability claim for a loan too which I have never ever applied for so a bit stumped there but they have offered me “wait for it “ £5.56 in compensation for a laptop that I never had back in 2007 but was actually paid in full on my records
Sara (Debt Camel) says
The regulator has now put out new rules saying everyone affected by Coronavirus can have a 3 month payment break. These will be alive in a few days but i suggest you go back to BH now and say you would like a 3 month break.
Toni says
I have contacted them via the website to say i cannot afford repayments at the moment because of the current situation. My question is can they send people to my house to collect goods if I don’t pay, my payment is due Friday. I am worried as I have young children and do not want people knocking on my door.
Sara (Debt Camel) says
legally they can, although it wouldn’t happen quickly. But at the moment, with social distancing , it is simply incredibly unlikely…
And the regulator may be introducing new rules next week which say firms HAVE to give a three month payment break. But you should stop the payment on Friday, not wait for this new rule to go live.
I am writing a new article about these new rules – should be published this afternoon.
Steve says
Hi Sara if I send BH an email for an afford ability complaint and say what you have said at the top of this article should I also mention about the poor processes which they would lend as I would go in store say my circumstances hadn’t changed and they would offer more credit with out digging deeper asking if I felt it was affordable for me. Should I also tell them I’ll be withdrawing payment until my case has been looked at or should I leave that out and just stop paying
Thank you
Sara (Debt Camel) says
I think adding more details is good. You don’t have to write a long essay, but say what happened to you.
And yes, also say you won’t be making any more payments until your affordability complaint has been determined as you have the right of set-off.
John says
Hi Sara as I have an affordability complaint in already am I in my rights to stop paying until this has been resolved? Obviously letting BH know as well.
Sara (Debt Camel) says
Yes, you can say you won’t be making any payments until your Claim has been decided as you have the right of set-off. BH/the administrators may say you still have to pay… come back here if they do?
John says
Hi had an email today and they have said I mus continue to make payments. Are you able to advise?
Thanks
Sara (Debt Camel) says
I suggest you reply asking why you cannot wait until your claim is resolved as you have the right of set off.
Brian says
Hey Sara,
Hoping you can help, I had a complaint on for products o bought and finished paying late last year which left me in more debt.
I had a letter from them last Monday to say I’m at 8 weeks but they need more time.
What happens now and what should I do?
Thanks
B
Sara (Debt Camel) says
You have to leave the complaint with them. You can no longer send these complaints to the Financial Ombudsman. It may be that you only receive a small percentage of the refund you should have got after a long while.
joseph murray says
Hello Sara, unfortunately I am also in the clutches of unaffordable brighthouse items over the past years and at present I have 5 items at £100 per fortnight, I am on ESA and in the support group ,and DLA high mobility middle care rate, I have a mobility car which half’s DLA payments,,it’s a real struggle to pay due to this awful coronavirus, I have read your advice Sara and last week sent a unaffordable complaint ,and then I went to brighthouse website and asked for a payment freeze due to the virus and the financial changes it has made to myself, I received a automated reply email about the affordability Complaint saying they will look into it whenever possible, also received email from brighthouse this morning about payment freeze and they are asking me to call them, can I just email brighthouse back Sara saying that I already have a affordability Complaint in and say I won’t be making any payments until my claim has been decided. just not sure what to do at this point . Thank you.
Sara (Debt Camel) says
has your income – or anyone else in your household’s income – been affected by Coronavirus?
josesph says
Yes having to buy from anywhere as shelves are empty, and this is costing much more money, also in arrears with electric as I can’t pay everyone, I have been advised to stay home for 12 weeks as I am 64 years old and in the vulnerable group, and my wife is my carer, I also have a 1st year student nurse living at home, and she lost her part time job with McDonald’s so we lost her help…thank you
Sara
Sara (Debt Camel) says
OK so you can ask for a payment break because of coronavirus – explain why your household costs have risen,.
Also say that you have an affordablity complaint in and say £100 per fortnight for 5 items is unaffordable and BrightHouse should never have given you the loans,. say you won’t be making any payments until your Claim is resolved as you have the right of set off,.
joseph murray says
Hello Sara, thank you for the advice I will do that and let you and everyone else know the outcome .
Erin says
Hi Sarah,
I have followed your advice that you have given people on here. I have an affordability claim in and I stopped making payments. Emailed them to tell them to offset what I owe against what they owe me. Received a text message this morning saying I was in arrears. I rang them and he said he’d only give me 28 day holiday. I explained that I already had affordability complaint in. He said it has nothing to do with affordability complaint this is separate. When I receive my money I can do with it what I wish. He said that after 28 days they will require a payment to put the agreement back. I have over 50 agreements with them over the years and on my credit report they have only ever done 1 affordability check in 2018. Seems little bit daft to me to pay them anything when they owe me money. Any advice would be great. Many thanks
Sara (Debt Camel) says
The best advice is don’t pay them as it sounds as though you have a very strong affordability complaint!
Suppose you owe them £400 at the moment. And that you win the affordability complaint and the refund you should get will be £1000. Obviously I have just invested these figures!
When a firm has gone into administration. people don’t get repaid the full amount of their claim. For wonga it was only about 5% – what will happen if that is the same with brightHouse?
Case 1 – suppose you pay them what you owe now. That is £400. Then after a year or so you will get back 5% of £1000, that is £50. Overall you have paid out £350.
Case 2 – suppose you refuse to pay them, saying you want them to assess your complaint as you have the right of set-off. Then the £1000 you are owed for the refund will be used to clear the balance so you owe nothing and you will be owed £600 and you will get 5% of that = £30. Here you have received £30.
which would you prefer, to pay them now and end up paying £350, or wait and end up receiving £30?
Erin says
Fabulous advice. Thank you very much appreciated! I will not be making them any further payments at all! Stay safe and thank you 😊
Sara (Debt Camel) says
let me know if you think they get to be very threatening – they shouldn’t!
Trudi says
Hi I tried this, was told I quote” if you don’t pay what we say, we will sell on your debt, and you will no longer be a Brighthouse customer,
They also keep saying on the affordability side they can’t verify things,
Sara (Debt Camel) says
Ask them to put it in writing as you want to take debt advice.
Erin says
Hi Sara,
Just a quick update. I am receiving weekly calls now from Brighthouse. I spoke to one last week and said that they are not getting a penny off me till my affordability claim is sorted and hung up on them. Then had another one today asked the same questions … told them again not paying anything as I have a right to off set and they asked who told you that so I said Stepchange website read it! Then she said well it won’t stop us phoning you. So basically they are going to harass me for the next however many months lol … I not so politely told her to try it and see my response. They owe me money, I should be ringing them every week demanding my money. So for everyone in here follow Sara’s advice stick to your guns with them.
Erin says
I will do thank you. I don’t think they’d dare! But if they do I will be in touch!
Concerned Observer says
It’s very irresponsible to recommend to someone that they should cease their repayments because they’ve made an affordability complaint. It’s also not what the Financial Ombudsman Service would recommend. With the option to take a rejected complaint to the ombudsman no longer an option, a cessation of payments at this stage will potentially only result in credit file damage. Even if the ombudsman were still available as a potential avenue of recourse, playing credit file roulette still wouldn’t be a good idea.
Sara (Debt Camel) says
FOS never sees a case where a lender is in administration, so I don’t know how you can guess what they would recommend.
In this case, with 50 items bought before, she is likely to have a very good case for a refund and therefore the right of set-off against the balance owed.
This is what StepChange say:
“If you have both an outstanding debt and a complaint with Brighthouse, you should stop paying the debt until the complaint is resolved. This is so that any redress they get can be offset against your outstanding debt. This should not put any goods at risk, because repossession action should not be taken where a complaint is under investigation.”
PS I have more respect for this sort of comment where someone uses a real name and email address.
Andrew says
Hi Sara ,I’ve followed your advice by emailing an affordability complaint and a complaint as to why I’m paying insurance on half my items which is 20 per week in insurance I don’t need as I have my own on half my items,also I’m paying £141 per week and have been with Brighthouse since 2016 .My next payment is due Saturday but I’ve cancelled my cpa with my bank and await BrightHouse response .
John says
Hi Sarah me again. Just had a question about my affordability complaint. If BH reject it and so do the Financial Ombudsman what happens then if I haven’t made any payments why this is all looked at? Will I affectively be in arrears?
Thanks
Sara (Debt Camel) says
the complaints won’t be able to go to the ombudsman now BH is in administration. It’s up you if you pay it while the complaint goes through.
You said your costs had gone up because of coronavirus and you were struggling before, so asking for a payment holiday for coronavirus sounds sensible as I said.
If you aren’t sure if you can manage to pay it, you could talk to National Debtline on 0808 808 4000. They can talk through an Income & Expenditure sheet with you that will give you a better idea? And now your Universal Credit will be going up this month which will help.
Chloe says
Hi Sarah,
I’ve got an item currently out with BH, would it be too much of a risk to submit an affordability complaint with having the risk of losing the item? Also, where would I stand with the compulsory contents insurance which I also no longer need? (I have home insurance which covers it now)
Thanks for the help, just trying to get my head around everything!
Sara (Debt Camel) says
was this the first item you had from them?
Zee says
Ok what happens if they leave a negative rating on the credit report or put your account on default??
Sara (Debt Camel) says
A missed payment or a default on your credit report will harm your credit score and make it harder to borrow from other lenders. How large the effect is depends on how good your credit score is at the moment. Many people who are reduced to buying from Brighthouse also have poor credit records already, in which case more missed payments or defaults may not have much effect – check what your current credit score is before deciding whether it is worth protecting!
BUT what is your current situation? here are some of the many possible situations, all different:
If you just have a temporary problem because of Coronavirus, then ask BH for a few months payments break – they may well agree to this and it won’t impact your credit record at all.
If you have bought a lot from BH before and have made an affordability complaint, then if your complaint is won, any negative marks are removed from your credit record.
If this is your first purchase from them and you want to keep paying but just at a lower rate, ask for a reduced payment. If you keep up with that they may add a “payment arrangement” marker to your credit record but that isn’t as bad as a default.
Tracy Ingram says
Hi I phoned the bright house today to pay I rings then they say will put you through it’s just a automatic message so how are
Supposed to pay I can’t afford it as my husband died and left owing money .
They changed the name it was I’m his name and changed it over to me without me knowing please can you let me know what I can do
Sara (Debt Camel) says
They can’t change the name on a credit agreement without you agreeing to this. Did they ask you if you wanted it transferred so you keep on paying?
What is the item and when was it bought? how long to go? Had your husband bought other things from BH before?
Tracy Ingram says
Yes he had quite a bit from them over the past he never missed a payment I phoned them yesterday and they said that were going to get someone to call me back I explained to them what has happened but still nothing. They have even got his date of birth not mine
B says
Hey Sara,
I have a complaint coming in at 12 weeks next week, what are my chances now they are in administration? Do i still apply pressure?
Kindest Regards
B
Shebsp says
Hi I put in an affordability complaint last June and kept paying them I was chasing them up every month then I received a letter on 1/3/20 to say that they would have a reply WITHIN 4 weeks I chased them every week I had taken it to the ombudsman last year it is still waiting for an adjudicator never got final response when it was promised then they went into administration so I emailed then to say how disgusted I was with there delaying tactics and I would not be paying another penny to them now I’m getting phone calls from them wanting payments while all this is going on really disgusted that they are harassing people for money in these times I think the FCA should be stepping in as they shouldn’t be harassing people while everyone is in worried about what’s going to happen despicable company
Zee says
Hi,
I asked for a discount to my apr as it was too high due to me being furloughed and I got the following respose:
If you are experiencing financial difficulties, please call so we can help you with one of the following solutions –
· Full return ability: You may return your items with nothing more to pay, your arrears would be cleared and the agreement terminated.
· Substitution: You can return your goods and discuss taking alternative items, at a lower weekly payment.
· Rewrite: Your arrears can be moved to the end of your agreement, at no additional cost.
· Extended Repayment Plan: Depending on the age of the agreement, we can extend the term, allowing a reduction in your weekly payments with no additional interest.
· Commitment: If you are still able to afford your weekly payment and plan to continue to pay, let us know please call our Customer Relations Department on 0800 526 069 where we can try to assist you accordingly. Please be aware that we are expecting a large volume of queries and you may therefore not receive an immediate response and we will answer your call at the earliest.when you expect to restart payment.
· Breathing space: If required, we can hold your account for up to 28 days to allow you to seek specialist advice
Sara (Debt Camel) says
So lots of options but not a very helpful tone.
In practice you need to persevere. I suggest you contact them and say you can only afford to pay £x while you are on furlough or indeed nothing. Say you are happy to take a payment break for a few months and to repay the arrears at the end.
Don’t let them push you into paying more than you can afford, If they try, just say you wabt a 28 breathing space to take debt advice.
BUT have you bought other things from BH before?
Zee says
Hi Sara,
Thanks – I have only bought 2 items..I will have paid of 1 item next month and the other item will be settled next year in May 2021.
Regarding paying the arrears in the end, can I leave there arrears till next year?
Thanks
Zee
Sara (Debt Camel) says
Sorry, you need to talk to BH about what help they suggest. You are in financial trouble, the regulator says BH has to “provide appropriate forbearance” and allow consumers who are experiencing, or expect to experience financial difficulties “a reasonable time and opportunity to repay. This is applicable even when a firm is in administration.”
John says
Hi Sara,
Me again sorry, you may remember my complaint of being on £1050 universal credit but being offered a couch of £1177 costing me over £2300 over 2 years. I got the email below today.
Thank you for your subsequent email. As you are aware BrightHouse in now in administration, I can also confirm that Anth Mooney stepped down following BrightHouse entering administration on 30 March 2020.
In addition to this, we are no longer in a position to confirm how long it will take to resolve your complaint and as explained in our previous email, your obligations under the hire purchase require you to maintain your weekly payment(s).
I would like to take this opportunity to highlight that should the outcome of a complaint result in a redress payment. It will now be considered as an unsecured creditor for the value of the offer. If the Joint Administrators are able to make a payment to unsecured creditors we will contact you and ask if you wish to make a claim. You do not need to take any action at this stage. Further updates will be posted to the BrightHouse website when available.
In relation to your rights following the outcome of your complaint, please see the below webpage from the Financial Ombudsman Service.
Sara (Debt Camel) says
So the normal complaints procedure is stopping. That is what i would expect. the administrators will come up with some way of deciding your complaint. Was this the first item you bought from BH?
If you have been affected by coronavirus, you can ask for a payment break.
John says
Thanks Sara how long will that take? My agreement finishes next February so in an ideal world I’d like this resolved ASAP (won’t hold my breath though).
Yes this is the first it I’ve ever bough from BH, will that make a difference?
Thanks
Sara (Debt Camel) says
It tends to be easier to win an affordabilty complaint if there are several loans, but this loan was large so it’s worth a try if you feel the repayments have been unaffordable for you.
John says
Thanks. Am I shooting myself in the foot then continuing to make the payments? I just don’t want anything negative on my credit profile. If I can make the paymentd even though it can be extremely hard some months then I will.
Sara (Debt Camel) says
Can I suggest you talk to National Debtline on 0808 808 4000 about this? They could help you look at what you can really afford.
If your household finances have been affected by coronavirus, you should be able to pay a reduced amount for a few months without it impacting your credit score if BH agree to the lower payments.
Tracy Hill says
I have been with Brighthouse for many years. I have been on benefits for most of it and at one time was paying about £20 per week. Last year I took out an IVA because of my debt problems and was told later it did not apply to Brighthouse so I am still having to pay them as well as the IVA.
I have emailed them as above, in the hope I can get something back.
Sebastian says
Are the administrators allowed to charge interest in the goods taken out from BH as if they reduced that then a lot more people might find their payments manageable ?
Sara (Debt Camel) says
Yes, the terms of the credit remain the same.
If the payments aren’t manageable temporarily because of coronavirus, ask BH for a payment break or reduced payments and explain why.
If the payments were to high to be affordable even without Coronovirus, putin an affordability complaint.
AQ says
I have been advised by my iva assessor that brighthouse cannot repossess any items now ..
1. Due to social distancing and 2. Because they will not be able to pay the wages for workers to collect items . The items are useless to the administrators.
For this reason I have entered brighthouse into my iva
Sara (Debt Camel) says
I think those two points are right. The administrators are VERY unlikely to want piles of second-hand fridges, TVs and sofas that they cannot possibly sell at a reasonable price.
do you have an IVA in progress? or are you having one set up at the moment?
Dave L says
This raises an interesting point I am currently in a DMP and have put a complaint into Brighthouse, I’m wondering if I should ask my DMP to include the debt within the DMP rather than treating it as hire purchase.
Sara (Debt Camel) says
how many things did you buy from Brighthouse before this one? Who is your DMP company?
Dave L says
Its Stepchange and I have five items currently on finance with Brighthouse
Norah says
I was told yesterday that nobody will get anything from complaints as they no longer exist,but just keep paying ,I phoned up to make s payment and I asked
Sara (Debt Camel) says
Go back to them and say your complaint has to be assessed and you have the right to use the money from a complaint to offset against what you owe.
This isn’t just some odd website on the internet saying this. This is what StepChange, a major national debt charity says (https://www.stepchange.org/brighthouse.aspx) :
“If you have both an outstanding debt and a complaint with Brighthouse, you should stop paying the debt until the complaint is resolved.”
Sara (Debt Camel) says
Also think about your particular case:
– if you have bought a lot from BrightHouse you probably have an excellent complaint and it’s well worth standing firm.
– if you only have £40 left to pay you may wonder if the hassle of not paying is worth it.
– if your finances are in a mess because of Coronavirus then you also need to ask for a pyment break because of that.
Ms Tracy says
Update.
I emailed them and asked for a payment holiday and was told i was up to date with my payments until 16th may as i always pay in advance so didn’t need a holiday.
I also got a letter confirming my claim was being reviewed but could take some time. no idea how long it will take so could be a while. I have been told just to stop payments until this is sorted. my credit file is already a mess so it wont make any difference.
if anyone has any different advise i would love to hear it
Sara (Debt Camel) says
I have been told just to stop payments until this is sorted. my credit file is already a mess so it wont make any difference.
I think that is good advice.
Most people worry too much about protecting or improving their credit record. Most BrightHouse customers like you don’t have anything worth protecting! If the payments are difficult for you to manage, that is the most important thing. Stretching to make them and having to borrow more or get behind with bills is much more of a disaster than a missed payment of your credit record unless your credit record is excellent or you are about to get a mortgage.
Sara (Debt Camel) says
If you have been affected by Coronavirus go back to them again and ask for a payment break for 3 months after the 16 May. Just because you managed the last ones doesn’t mean you can manage the next ones!
Sarah says
Hi I was upto date with bright house until the lock down was brought in. I tried to keep payment up but was unable to pay three weeks. I rang up and paid but because they had added late payment on they said I was in arrears of £175. They said that they will give me a payment holiday until 30 May and interest will still be added and I will still have to pay the late payment as well.
I am 300 down a week because my partner is an entertainer and has had no work for 10 weeks.
I told them this and they said they will review at the end of May
I really don’t know what to do
Any advice please
Thanks Sarah
Sara (Debt Camel) says
“I rang up and paid but because they had added late payment on they said I was in arrears of £175.”
Did you paid one weeks payment and the £175 is for two weeks plus a late payment?
Can I ask what your credit record is like?
Was this the first thing you bought from BrightHouse?
Also do you have other problem debts and bills at the moment?
Sarah says
Hi I have a bad credit record and I have serval items from them.
I’ve received letters in the post today as well saying I’m in arrears.
I thought that they aren’t allowed to do this whilst the coronivirus is going on?
John says
Hi Sara regarding having outstanding debt and having an affordability complaint ongoing BrightHouse have come back with the following
Please also, note we cannot comment on the 3rd party advice you’ve received. BrightHouse terms and conditions confirm you need to maintain regular payments, regardless if you have an open claim or not.
Where do I stand?
Sara (Debt Camel) says
I suggest you reply that this has nothing to do with BrightHouse T&Cs but it is a right under English law that someone with a claim in an administration should be able to have that offset against any balance owed. Say you would like a reply from the administrators about this.
Marie says
I’m in a very bad mood I missed one payment about of this conoavirus and brighthouse has double my payment and when you miss a payment they should add a £12 late payment not double it I’m not paying till they sort it out and only put £12 last payment and take off the double amount
Sara (Debt Camel) says
I am asking two different things because you have two different things you can do here. You can do one, or the other, or both. I’m asking so I can suggest which may work best.
First how exactly have your household finances been affected by coronavirus. Has your income gone down? Has someone else in the house had a problem so now you are having to pay more of their bills?
Second have you bought other things from BrightHouse before? If you have bought several you may well have a good “affordability complaint” to make.
Marie says
I got 7 things from brighthouse and I got pay more on my bills
Sara (Debt Camel) says
As you have bought 7 things from brightHouse you may well have a good “affordability compliant”.
See the sections “Should you make an affordability complaint?” and “How to make an affordability complaint” in the article above.
Can you explain a bit more about why you having to pay more on your bills because of Coronavirus. I am not disputing that you do, but I am encouraging you to give more details as that will help when you ask BrightHouse for a payment break.
Patricia a Rea says
I’ve always bought from bright house. Always happy till the shop became less busy.talking to the staff was obvious that they were in trouble.my last purchase was two reclining chairs. After a short time,the one chair became not up to standard and was then I told the shop. Then came covid 19.shop closed and as I’m 72 cannot get out to pay my account .now I’m in arreas and can’t pay online till my arreas are payed .all I want to do is pay my account.it’s not rocket science.