BrightHouse administration: If I've bought something on credit will I have to pay it back?
BRIGHT HOUSE, the largest rent-to-own company in the UK, has officially collapsed. If you've bought something on credit, will you have to keep paying it back?
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BrightHouse filed for administration on Monday, March 30, attempting to salvage parts of the business. The rent-to-buy company’s collapse puts 2,400 jobs at risk and comes as the home retailer was closed due to the coronavirus outbreak in the UK. Julie Palmer, from corporate recovery business Begbies Traynor, said: "Coronavirus was the final nail in the coffin for BrightHouse."
BrightHouse provides loans to consumers to purchase electrical items such as televisions and washing machines.
The company traded from 240 stores across the UK and has roughly 200,000 customers.
A spokesman told Sky News on Friday: "The national response to the COVID-19 pandemic has required us to prioritise the health and wellbeing of our staff and customers, in particular by closing all stores in the last few days.
"While we continue to actively engage with our stakeholders, these developments have made the task of finding a future for BrightHouse more challenging."
READ MORE: BrightHouse to pay back £14.8m following review by City watchdog
If you've bought something on credit, will you have to keep paying it back?
The collapse of BrightHouse does not mean your debts will be written off.
Administrators will have to take over the running of the company, meaning the agreements you signed for each product are still valid.
If you do not continue making the repayments your credit score could be penalised for missing a paying.
It is also unlikely that you will be given the option of returning your goods.
BrightHouse is more likely to demand that you keep making the payments than it is to take back secondhand goods.
This is because the items would then need to be sold on to raise the funds.
Resolver's Martyn James told The Sun: "If you bought goods and haven’t paid them off then you shouldn’t have return them, as long as you maintain the payments.”
How do I pay my BrightHouse bill?
BrightHouse offers various payment methods including Easy Pay, PayPoint, Fast Pay, Smart Pay and Online Payments.
Easy Pay
Perhaps the most convenient way to pay, Easy Pay allows you to log your debit card details securely with BrightHouse’s payment provider WorldPay and then payments are automatically taken on your chosen best day to pay.
PayPoint
Pay your BrightHouse account by cash in any of the 28,000 PayPoint locations across the UK.
Fast Pay
Payment by phone any time from 8am to 8pm Monday to Saturday whenever it suits you.
Smart Pay
Pay online any time by linking your Debit card to the SmartPay service through your phone.
Online Payments
Log in to your Brighthouse.co.uk account to make a secure online payment.
These payment methods are subject to change when BrightHouse goes into administration.