......to protect thousands of vulnerable customers
  • New price cap will kick in on 1 April and should help vulnerable customers
  • FCA announced 100% total credit cap
  • There is also now requirement on firms to benchmark base prices
A price cap which aims to protect vulnerable customers in the rent-to-own sector has been announced by the Financial Conduct Authority. It has introduced a 100 per cent total credit cap meaning customers of firms such as BrightHouse, EasyBuy and PerfectHome will no longer pay more interest than the original cost of an item. Some rent-to-own customers can end up paying in total more than four times the retail price of goods - and this cap will prevent this. For example, instead of a 400 washing machine costing a potential 1,600 or beyond, the maximum a firm can charge from April will be capped at 800.