05 Mar 2019 The FCA today announced a number of measures to stop vulnerable people paying way over the odds for rent to own purchases.
In future retailers won’t be able to charge more than 100% of the price of goods – a big improvement as in some cases people are paying up to 4 times the price of items once charges and insurance is taken into account.
Andrew Hagger, Personal Finance Expert from Moneycomms said:
It’s good to see the regulator stepping in to protect some of the most financially vulnerable in our society.
These people have been taken advantage of for far too long, mainly because the retailers know such customers often have nowhere else to turn.
The credit cap of 100% is a welcome move and it’s pleasing that the FCA won’t let these retailers recoup their money via the back door by increasing the cost of add on insurances.
The new rules come into force on 1st April 2019.