Difference between revisions of "Brighthouse Fact Sheet"

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(Brighthouse Stores (formerly Crazy Georges) Fact Sheet)
(1 – HIRE PURCHASE AGREEMENTS)
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When you enter into an agreement with BrightHouse, you are entering into a HIRE PURCHASE or CONDITIONAL SALE agreement. Hire purchase agreements are governed by THE CONSUMER CREDIT ACT 1974 and goods being purchased are subject to the SUPPLY OF GOODS (IMPLIED TERMS) ACT 1973 (see below). You will be expected to make weekly (or monthly) payments IN ADVANCE for the duration of the agreement – which can range from 52 weeks to 156 weeks depending upon the product. Ownership of the goods remains with BrightHouse until the last payment is made. You DO NOT own the goods until then. You cannot sell them or dispose of them in any way.
 
When you enter into an agreement with BrightHouse, you are entering into a HIRE PURCHASE or CONDITIONAL SALE agreement. Hire purchase agreements are governed by THE CONSUMER CREDIT ACT 1974 and goods being purchased are subject to the SUPPLY OF GOODS (IMPLIED TERMS) ACT 1973 (see below). You will be expected to make weekly (or monthly) payments IN ADVANCE for the duration of the agreement – which can range from 52 weeks to 156 weeks depending upon the product. Ownership of the goods remains with BrightHouse until the last payment is made. You DO NOT own the goods until then. You cannot sell them or dispose of them in any way.
 
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However, this does NOT mean that BrightHouse can just stroll into your home and remove their goods if you get into payment difficulties. Unless you have actually consented to their removal, BrightHouse cannot legally remove (re-possess) them until they have:
 
However, this does NOT mean that BrightHouse can just stroll into your home and remove their goods if you get into payment difficulties. Unless you have actually consented to their removal, BrightHouse cannot legally remove (re-possess) them until they have:
 
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a) Issued you with a default notice (in writing)<BR>
 
a) Issued you with a default notice (in writing)<BR>
 
b) Given you an opportunity to put matters right (at least 7 days)<BR>
 
b) Given you an opportunity to put matters right (at least 7 days)<BR>
 
c) Applied for (and been granted) a court order
 
c) Applied for (and been granted) a court order
 
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These issues will be explained in more detail in a moment, but it is important to remember that: AT NO TIME CAN ANY EMPLOYEE (OR AGENT) OF BRIGHTHOUSE FORCIBLY ENTER YOUR HOME
 
These issues will be explained in more detail in a moment, but it is important to remember that: AT NO TIME CAN ANY EMPLOYEE (OR AGENT) OF BRIGHTHOUSE FORCIBLY ENTER YOUR HOME
 
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If you do get into payment difficulties, the first thing you should do is try and address the problem yourself. You should do everything you can to bring your account up to date. If you simply cannot afford the regular repayments, you should decide whether you actually need the item(s) you are paying for, and seriously consider returning them.
 
If you do get into payment difficulties, the first thing you should do is try and address the problem yourself. You should do everything you can to bring your account up to date. If you simply cannot afford the regular repayments, you should decide whether you actually need the item(s) you are paying for, and seriously consider returning them.
 
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<BR><BR>
 
The store will very quickly contact you by telephone. You can expect a phone call if your payment is just one day late! Brighthouse have also been known to phone around the names you have given as references and turn up unannounced at your home. They will bombard you with all sorts of “threats” ranging from insisting on a set time to pay - to instant repossession, but you should simply ignore and disregard anything BrightHouse say to you unless it is in writing. Any kind of aggression or confrontation should be avoided at all times
 
The store will very quickly contact you by telephone. You can expect a phone call if your payment is just one day late! Brighthouse have also been known to phone around the names you have given as references and turn up unannounced at your home. They will bombard you with all sorts of “threats” ranging from insisting on a set time to pay - to instant repossession, but you should simply ignore and disregard anything BrightHouse say to you unless it is in writing. Any kind of aggression or confrontation should be avoided at all times
 
+
<BR><BR>
 
Strangely, and with complete disregard to Office of Fair Trading guidelines (reproduced below), BrightHouse have an active policy of forcing you into further arrears and debt. They will NOT accept part-payments or allow you to reduce any arrears by paying a little extra for a few weeks. In fact, they will also make the FOLLOWING week/month payment due, making it even harder to “catch up” and bring your account up to date. You will also incur a weekly “penalty charge” (currently £2.70 per agreement).
 
Strangely, and with complete disregard to Office of Fair Trading guidelines (reproduced below), BrightHouse have an active policy of forcing you into further arrears and debt. They will NOT accept part-payments or allow you to reduce any arrears by paying a little extra for a few weeks. In fact, they will also make the FOLLOWING week/month payment due, making it even harder to “catch up” and bring your account up to date. You will also incur a weekly “penalty charge” (currently £2.70 per agreement).
 
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For example, let's say your weekly payment is £25.00 (3 typical agreements - fridge, washing machine and TV), the punishment for being just ONE DAY LATE will be a required payment of £58.10. Eight days late and it becomes a staggering £91.20.
 
For example, let's say your weekly payment is £25.00 (3 typical agreements - fridge, washing machine and TV), the punishment for being just ONE DAY LATE will be a required payment of £58.10. Eight days late and it becomes a staggering £91.20.
 
<BR><BR>
 
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f. pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so
 
f. pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so
 
g. making threatening statements or gestures or taking actions which suggest harm to debtors.</I>
 
g. making threatening statements or gestures or taking actions which suggest harm to debtors.</I>
 
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By missing just one payment, your arrears can quickly spiral out of control. Before you know it, you can find yourself in serious debt – and the debt will only increase week by week. It won’t be long before BrightHouse threaten to re-posses their goods. This will be in the form of a written default notice.
 
By missing just one payment, your arrears can quickly spiral out of control. Before you know it, you can find yourself in serious debt – and the debt will only increase week by week. It won’t be long before BrightHouse threaten to re-posses their goods. This will be in the form of a written default notice.
 
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In this situation, you should consider writing a letter similar to this one:  
 
In this situation, you should consider writing a letter similar to this one:  
 
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(Send recorded delivery to head office, and copy to your local store)
 
(Send recorded delivery to head office, and copy to your local store)
 
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<B>Account(s) number(s) XXXXXXXXX
 
<B>Account(s) number(s) XXXXXXXXX
  

Revision as of 17:28, 29 March 2008

Brighthouse Stores (formerly Crazy Georges) Fact Sheet

By Lefty (November 2007)



BRIGHTHOUSE – Your weekly payment store!

New Home cooker for sale at Brighthouse - £703.29.

Paid for over 3 years at £9.99 per week using their credit deal, total cost- £1,558.44.

Argos price - £495.00



INTRODUCTION


This fact sheet has been produced to help anyone who may be having problems with the high street retailer BrightHouse. It is the result of many months of research (including the writers becoming customers of BrightHouse themselves) and experiencing, first hand, an inherent culture of social-discrimination, apathy, lies, arrogance, obstruction, rudeness, and even aggression towards customers.

By unravelling, a complex system of financial exploitation (aimed at some of the least well-off in society), this fact sheet also makes essential reading for anyone who is – or anyone planning to become – a customer of BrightHouse.

BrightHouse were asked to review this fact sheet, and were given an opportunity to respond to its findings prior to publication. We also invited BrightHouse to contribute, or to suggest any possible amendments, but the company chose to ignore all our requests.



BrightHouse (the trading name for Caversham Finance Ltd) is a high street electrical/furniture store and offers hire-purchase credit facilities to anyone – regardless of income, status and credit history. They target the “sub-prime” - in particular, the unemployed, single parents, council tenants and those with previous credit problems. Their stores are usually to be found in deprived areas – places the big banks and building societies have long abandoned.

Originally launched as Crazy George’s in 1994 (and re-branding as BrightHouse in 2003) the company has seen a steady growth over the last 10 years, and currently has over 150 retail outlets throughout the country. Taking their place alongside Log Book Loans (loans secured on your car), Provident, (door-step loans) and Cash Converters (the buyback store), BrightHouse help form the top four UK companies that specialise in exploiting the poor and profiteering from poverty. (Crazy George’s made headline news in 1995 after being dramatically “thrown out” of France due to its “over-inflated prices” and “unfair credit terms” which were deemed to be extortionate and ruinous to low income consumers.)

In this country, too, BrightHouse have been the target of several debt and consumer action groups, this due to predatory lending and a well publicised disregard for consumer law. Add to that their highly questionable contracts (more than once subjected to scrutiny by the Office of Fair Trading), "hard sell" sales techniques, non-negotiable insurance policies and “bully-boy” tactics when customers get into difficulties, and you’ll soon understand why.

All sorts of people can get into financial difficulties and, as a result, find their ability to obtain credit seriously impaired. Therefore, they have little or no choice than to use stores like Brighthouse for essential items for their home. Although they now have to accept they are considered part of the “sub-prime” market (and have to pay a higher price for credit), this does NOT mean they should be blatantly exploited, and that statutory consumer law does not apply to them!

1 – HIRE PURCHASE AGREEMENTS

When you enter into an agreement with BrightHouse, you are entering into a HIRE PURCHASE or CONDITIONAL SALE agreement. Hire purchase agreements are governed by THE CONSUMER CREDIT ACT 1974 and goods being purchased are subject to the SUPPLY OF GOODS (IMPLIED TERMS) ACT 1973 (see below). You will be expected to make weekly (or monthly) payments IN ADVANCE for the duration of the agreement – which can range from 52 weeks to 156 weeks depending upon the product. Ownership of the goods remains with BrightHouse until the last payment is made. You DO NOT own the goods until then. You cannot sell them or dispose of them in any way.

However, this does NOT mean that BrightHouse can just stroll into your home and remove their goods if you get into payment difficulties. Unless you have actually consented to their removal, BrightHouse cannot legally remove (re-possess) them until they have:

a) Issued you with a default notice (in writing)
b) Given you an opportunity to put matters right (at least 7 days)
c) Applied for (and been granted) a court order

These issues will be explained in more detail in a moment, but it is important to remember that: AT NO TIME CAN ANY EMPLOYEE (OR AGENT) OF BRIGHTHOUSE FORCIBLY ENTER YOUR HOME

If you do get into payment difficulties, the first thing you should do is try and address the problem yourself. You should do everything you can to bring your account up to date. If you simply cannot afford the regular repayments, you should decide whether you actually need the item(s) you are paying for, and seriously consider returning them.

The store will very quickly contact you by telephone. You can expect a phone call if your payment is just one day late! Brighthouse have also been known to phone around the names you have given as references and turn up unannounced at your home. They will bombard you with all sorts of “threats” ranging from insisting on a set time to pay - to instant repossession, but you should simply ignore and disregard anything BrightHouse say to you unless it is in writing. Any kind of aggression or confrontation should be avoided at all times

Strangely, and with complete disregard to Office of Fair Trading guidelines (reproduced below), BrightHouse have an active policy of forcing you into further arrears and debt. They will NOT accept part-payments or allow you to reduce any arrears by paying a little extra for a few weeks. In fact, they will also make the FOLLOWING week/month payment due, making it even harder to “catch up” and bring your account up to date. You will also incur a weekly “penalty charge” (currently £2.70 per agreement).

For example, let's say your weekly payment is £25.00 (3 typical agreements - fridge, washing machine and TV), the punishment for being just ONE DAY LATE will be a required payment of £58.10. Eight days late and it becomes a staggering £91.20.

An extract from the Office of Fair Trading (OFT) guidelines regarding the collection of debt:

Physical/psychological harassment 2.5 Putting pressure on debtors or third parties is considered to be oppressive. 2.6 Examples of unfair practices are as follows:

f. pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so g. making threatening statements or gestures or taking actions which suggest harm to debtors.

By missing just one payment, your arrears can quickly spiral out of control. Before you know it, you can find yourself in serious debt – and the debt will only increase week by week. It won’t be long before BrightHouse threaten to re-posses their goods. This will be in the form of a written default notice.

In this situation, you should consider writing a letter similar to this one:

(Send recorded delivery to head office, and copy to your local store)

Account(s) number(s) XXXXXXXXX

Dear Sirs

I am currently experiencing some financial difficulties and, as a result, have fallen behind with my weekly payments to BrightHouse.

I am receipt of a default notice for £XXXX

I do not wish to return the goods voluntarily, and as I cannot afford to pay this amount in one instalment, I would like to offer the sum of £(reasonable amount) per week on top of my regular weekly payment of £XX to clear my arrears over the next XX weeks. This payment plan can start immediately.

I have made this proposal (and made an offer of payment) at my local store, but my payment was refused. I was told that BrightHouse will not/cannot accept “part payments”. This “policy” only places my account(s) further into arrears and invokes further penalty charges. I find this both immoral, unfair and in direct contravention to OFT guidelines regarding the collection of debt.

Naturally, I hope you will accept my offer (above) and allow me time to bring my account(s) up to date in both a fair and affordable way. Of course, by accepting my offer, and by me maintaining regular payments (on time) you agree NOT to apply any further “penalty” or “late payment” charges to my account(s).

Please confirm in writing your acceptance or refusal of my offer in order for me to make the necessary payment arrangements, or to prepare for my defence in the County Court as appropriate.

Kindest Regards

YOU

cc - BrightHouse local store your local Trading Standards (this never hurts)


If you have paid more than one third of your agreement total, BrightHouse must seek a court order before they can re-posses their goods – which are now considered as “protected goods”. (Note - if, after one third of the agreement total has been paid and BrightHouse do re-posses their goods without a court order and against your will, then Brighthouse are in breach of their agreement and you are entitled to claim back all payments made previously on it.)

Even if you have NOT paid more than one third of your agreement total, BrightHouse must still seek a court order (return order) to re-posses goods from your home - even then they cannot forcibly enter. They can, however, re-posses their goods if they are in a public place.

If BrightHouse do decide to apply for a re-possession order (or return order), you will be notified of the hearing date and you will have the opportunity to put your case forward in court. If you want to keep the goods (and continue with your agreement) you must show the court you can still afford the repayments, and you should make a reasonable offer to reduce your arrears. The court will make a judgement and, if acceptable, order BrightHouse to accept your offer.

If you have paid more than half of the instalments on your agreement you may, if you wish, return the goods voluntarily and without any penalty.

More often, and as an alternative to court action (BrightHouse don’t appear to like going to court), you will probably get the offer of an account re-set. This entails signing a new agreement, which takes your outstanding balance, PLUS your arrears and starts “fresh” with a BRAND NEW agreement spread over a slightly longer period.

You should think very carefully before agreeing to this, because you risk losing all the rights you have accrued regarding repossession and early settlement, making it easier for BrightHouse to repossess their goods should you get into difficulty again.

If you do decide to accept an account re-set, insist the store manager (and you) sign the following covering letter and ensure it is stapled to your new agreement along with a copy of your ORIGINAL agreement...

Original agreement number XXXXXXXXXXXXXXXX

New Agreement number XXXXXXXXXXXXXXXX

Date

Updated agreement to reflect Account Re-Set

IMPORTANT Payments made previously on this agreement (XX payments to date representing XX of the total amount payable) are to be reflected, and form part of, any revised agreement.

All rights under the Consumer Credit Act 1974 regarding, in particular, “early settlement” and “repossession” as set out in section J of the original agreement remain intact and continue uninterrupted into any revised agreement.

Signed - YOU (Print name)

Signed - Store Manager (for and on behalf of Caversham Finance trading as BrightHouse) (print name)

2 – “OPTIONAL” SERVICE COVER

Brighthouse “Optional” Service Cover agreements are underwritten by Brighthouse parent company, Caversham Finance, and are added to your hire purchase agreement as an additional weekly payment.

You should cancel any “Optional” Service Cover policies you have now! Because:

a) the service cover was most likely applied automatically without giving you the option to choose whether you required it or not, and

b) the service cover is extremely over-priced and represents very poor value for money when compared to a typical manufacturer’s own extended warranty as the following examples show.

Hewlett Packard Extended Warranty - Available upon registering a new Hewlett Packard product or at the end of the manufacturer’s 12 month guarantee period

A single one off payment of £88.99 which provides an additional 2 years of cover to the initial 12 months guarantee period, giving a total of 3 years cover. This cover includes collection and return, all parts and labour and a brand new replacement product if any repair is not completed within 28 days

Caversham Finance (Trading as Brighthouse) “optional” service cover

104 weekly payments of £5.77 (total £600.0 providing service cover for the 2-year duration of the agreement. (As Hewlett Packard guarantees all new products for the first twelve months regardless, this figure only represents one year of actual extended service cover. The cost of this cover is extortionate and, quite simply, cannot be justified.

Of course, “Optional” Service Cover isn’t really service cover at all. As we’ve already established, all new products are subject to a 12 months manufacturer’s warranty, (which, of course, is in addition to your statutory rights – more about that later…) and any volume purchaser like Brighthouse will be able to negotiate massive discounts with outside service agents for any repairs that may occur at other times. No. “Optional” Service Cover is really a thinly disguised payment protection plan that protects the interests of Brighthouse and NOT you!

Brighthouse also appear somewhat confused over the word “optional.” My interpretation (having studied their terms and conditions) is that service cover is an “option” to purchase at the time of the initial agreement and cancellation thereafter will require 7 days notice. However, Brighthouse will say “optional” means the option not to purchase the service cover can only be exercised at the time of the initial agreement and, furthermore, cannot be removed thereafter!

This is a complete lie. Service cover is optional and can be removed. Of course, an attempt remove it will invoke fierce resistance from Brighthouse! Store managers have been briefed by their area managers regarding this “growing problem” as more and more customers are getting wise and seeing through the con that this service cover is! You can thank forums like this one for that!

To remove optional service cover from your agreement(s), put a request in writing to your store (and to head office). Once this has been done the store has to comply with your request. Quote your terms and conditions:

“Your Obligations: Optional Service Cover Section C (b) The service cover premium is renewable each time your regular instalment is due under the agreement. If the premium is not paid Service Cover will lapse.

Section H (3) This policy shall continue in force until you give seven days notice…”

You may also like to quote this extract from a transcript of the BBC 4 programme, “Money Box.”

“BrightHouse is the trading name of a company in Reading, Caversham Finance Limited. It refused requests for an interview, but in a statement said:

STATEMENT: All charges, terms and obligations in every agreement we make with our customers are explained in easily understood language in a personal presentation in store before the agreement is signed. We then test customers on their understanding of the agreement. The optional insurances offered and accepted by this customer were clearly explained and the customer had every opportunity to cancel either at the start of the agreement or at any time during it…”


3 - DAMAGE LIABILITY INSURANCE

Brighthouse “Damage Liability Insurance” agreements are, once again, underwritten by Brighthouse parent company, Caversham Finance, and are added to your hire purchase agreement as yet another additional weekly payment.

This insurance policy (around £250 on a £800 cash price product) is loaded AUTOMATICALLY and will only be removed if you can supply proof of "suitable" home contents insurance. (Brighthouse reserve the right to determine what is and what is not "suitable". In fact, very few home contents policies will specifically include items subject to a hire purchase agreement.)

You are told this insurance covers the product for damage, theft, fire, flood etc. However, unlike "real" home contents insurance it WILL NOT provide you with a replacement product should it become necessary (not even like-for-like) and will only, at best, release you from your agreement with Brighthouse - who, ultimately, benefit from the policy. You end up with NOTHING!!! Furthermore, in the event of a claim, the store manager will have the final say as to whether the policy should apply. He may, for instance, decide the goods where stolen or damaged because you didn’t secure or look after them adequately.

Basically, “Optional Service Cover” (above) and “Damage Liability Cover” is just one big payment protection policy split into two and sold (forced) onto the customer at an EXTORTIONATE cost.

The two insurance policies combined – and based upon a typical £800 cash price product – would eventually cost an extra £850.00


4 – LATE PAYMENT CHARGES

Brighthouse impose a penalty charge of £2.70 (per agreement) for late payments – even if only by one day! This may, on the surface, appear quite reasonable until you consider this is a WEEKLY charge and is applied to all agreements individually. (Most customers will have more than one agreement. For instance, a typical bed will be spread over two separate agreements. One for the frame and one for the mattress.)

This equates to a monthly charge of more than £11.00 per agreement, and assuming an average customer may have 4 separate agreements, this quickly becomes a monthly penalty charge of around £50.00. (This makes the banks and their highly publicised penalty charges look like angels in comparison!)

Punitive penalty charges are illegal in common law. Losses for breach of contract must only reflect the actual loss, and not be a way of profiteering. In much the same way as customers have challenged banks and had their bank charges refunded, people have also succeeded with claiming penalty charges back from Brighthouse.


5 – YOUR STATUTORY RIGHTS AND THE SUPPLY OF GOODS (IMPLIED TERMS) ACT 1973

If you have successfully removed the service cover from your agreement, and the goods then develop a fault, don’t be fobbed off with any rubbish that repairs have to be paid for and the responsibility lies with you. Regardless of how old your product is, and assuming it's been used correctly and in accordance with the manufacturer’s instructions, then Brighthouse have a LEGAL duty to comply with the SUPPLY OF GOOD (IMPLIED TERMS) ACT 1973 and either refund, replace or repair (dependant upon how old the goods are) as necessary.

Contrary to popular belief, your basic consumer rights DO NOT expire after 12 months! A new product should be of "satisfactory" quality, "fit for the purpose", "free from defects", "safe" and "DURABLE." The act relies on how a "reasonable" person would define "satisfactory" - and (in the case of a freezer, cooker or high end electrical product) a "reasonable" person would NOT expect a product to only last 12 months. High-end electrical products and most domestic appliances should have a useable life expectancy of anything between 4 - 18 years!!!!!

Your rights under the SUPPLY OF GOODS (IMPLIED TERMS) ACT 1973 can last for up to six years!


6 – YELLOW MONEY

Brighthouse have a system they call “yellow money”. How it works is like this: When you make a payment you are encouraged to round up and leave any excess (your change) in your account. This amount is then added to “yellow money” – a separate account in your name. These amounts can soon add up. Brighthouse DO NOT pay you any interest on this money – however, you CAN withdraw it at any time!

This is possibly illegal, and certainly not governed by the FSA.

Brighthouse claim to have in excess of 100,000 customers – and plan to open around 15 new stores next year! If every one of those customers just had £1 in there “yellow money” account that is £100,000 of “free” money that Brighthouse can invest – yielding some £10,000 a year in interest FOR THEM!


7 – CONCLUSION

Brighthouse target the poor. Fact! They also know that 100% of their customer base is “sub-prime” – people who can’t get credit by other means. They know that an average customer will just be happy knowing they’re getting some credit and WON’T rock the boat or demand their rights. Brighthouse know this – and that’s how their business works.

Sub-Prime does NOT mean Sub-Human. The customer may not always be right, but the customer is always the customer and the customer has rights – plus he is helping Brighthouse turn over an annual profit in excess of £140 million…