London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

Rent-to-own giant folds as coronavirus shuts shops

Rent-to-own giant folds as coronavirus shuts shops

BrightHouse - the biggest rent-to-own operator in the UK - has collapsed, with administrators now attempting to salvage parts of the business.

Customers should continue to make the monthly payments required to keep their household goods, with administrators now acting as the collecting agent.

The company had been struggling after an influx of compensation claims for selling to people who could not repay.

Its shops were then shut owing to coronavirus restrictions on retailers.

Julie Palmer, from corporate recovery business Begbies Traynor, said: "Coronavirus was the final nail in the coffin for BrightHouse."

BrightHouse, the trading name of Caversham Finance Limited, has 240 shops and 2,400 employees, whose jobs are now at serious risk.

The firm's collapse came minutes before Italian restaurant chain Carluccio's also fell into administration. Collectively, the two firms employ 4,500 people.


What happens with my appliance?


BrightHouse's 200,000 rent-to-own customers make monthly payments for household appliances, in effect renting goods (and paying interest) until they have paid in full.

Many are on low incomes and find it difficult to access credit from mainstream lenders to pay for fridges, TVs, washing machines and other electrical items. Only about a third are in work.

Customers should continue to make payments in the usual way, the administrators confirmed, although for some the closure of shops and no doorstep collection owing to coronavirus means that should be done in a different way.

Failing to make repayments, even now the company is in administration, could lead to extra charges and harm a credit score. However, those unable to pay for practical reasons owing to coronavirus will not be charged extra or have their credit score affected.

All new rent-to-own agreements and cash loans, which the company also provided, will now be stopped.

Servicing, warranties, and insurance claims will continue at present, as will delivery of essential items already ordered, but in line with coronavirus restrictions. These services operated alongside the rent-to-own service.

What happens next?
The collapse, which was trailed on Friday, means that the administrators - Grant Thornton - will now try to find buyers for all, or some, of the business.


The company's website was still operating on Monday morning.

Alongside many other lenders of high-cost credit, the company was being challenged by people who said they were given credit when they should not have been.

In October 2017, the company was fined nearly £15m by the City regulator, the Financial Conduct Authority (FCA), for not acting as a "responsible lender".

Some of those customers were given rental agreements, despite being unable to realistically afford to make the repayments.

In January, the business said it was under pressure from dealing with additional mis-selling claims

Debt adviser Sara Williams, who writes the Debt Camel blog, said: "Customers need to think if they can manage to make the repayments.

"If their income has fallen because of coronavirus, they should ask for a payment break. And if the item is just too expensive, they should ask for a lower payment arrangement. They may be able to make an affordability complaint and get a refund of the interest they have paid on previous items."

However, anyone eligible for compensation may now find they have to wait longer, and receive a fraction of what they might have expected.

Rules, introduced last year, restricted the cost of rent-to-own, following claims of spiralling debts.

The FCA ruled that interest charged would be capped to as much as the cost of the product.

Prices were also controlled, with shops only able to charge no more than the median - the middle price - of three mainstream retailers, including delivery and installation charges.

Shops were also prevented from increasing their prices for insurance premiums, extended warranties, or arrears charges, to recoup lost revenue from the price cap.

Before the rules were brought in, spiralling interest charges meant some rent-to-own consumers had ended up paying more than four times the retail price they would have paid in normal shops.

Among those who were unhappy with how the business operated was Terri Carter, a paralegal from Great Yarmouth.

She had ordered a TV through BrightHouse after running out of money when furnishing her new home. She went into the store to explain that she needed to miss a repayment, only later to find a woman in a suit, accompanied by two "big blokes", banging on her door.

At home with her son, they threatened to take away her TV, and she felt forced to agree to making extra payments.

"I work in law so I knew my rights, but what if that happens to someone older, or someone who has just had a baby?" she said.

Angela Clements, founder of not-for-profit buy-now-pay-later operator Fair for You, said: "While my heart goes out to BrightHouse's staff who will lose their jobs, I hope that its collapse will make other lenders think twice before trying to make easy money out of hard-working families in this way.

"There is a clear need to support and rapidly scale the affordable lending sector so that other high cost credit doesn't keep mutating in that gap."

Newsletter

Related Articles

0:00
0:00
Close
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
×