One of Britain’s biggest rent-to-own retailers, BrightHouse, could be the next retailer to enter administration with around 2,400 jobs at risk.
2019 saw 30 stores close leaving 240 stores across the UK, including a large unit in Swindon Town centre.
However Sky News have reported administrators are on standby as the company deals with high compensation claims due to mis-selling in the region of £1million each month.
It has been reported that BrightHouse paid £14.8million compensation to its customers in 2017 after the Financial Conduct Authority (FCA) concluded the company treated its customers unfairly due to the rates set.
A spokesperson from BrightHouse has said: “BrightHouse is exploring a range of options to cap its exposure to claims for historic mis-selling.
“To be successful in this, BrightHouse needs the support of its stakeholders and is currently in active discussions with them.
“Naturally, the protection of value in the business and safeguarding of customers’ interests are core to our planning.”
Will my BrightHouse debts be written off if it collapses?
Should BrightHouse enter administration, any existing debt will not be written off, administrators will take over existing contracts, meaning you have to keep making payments as normal.
If you fail to do so, the same consequences apply as before any collapse – including your credit score being hit and potential county-court judgements against you.
