Financial Conduct Authority says company supplying household goods on high-cost credit has not been ‘a responsible lender’
Charity warns more people are struggling with high rates and fees on new type of loans and calls for better regulation
Rent-to-own companies are selling products to vulnerable people with mental health problems and learning disabilities, the BBC has found.
The firms allow customers to pay for a household item in instalments, with high interest rates, until they own it.
Citizens Advice worries that vulnerable people are being "pushed into further financial difficulty".
Hundreds of thousands of customers who buy household goods through rent-to-own schemes are being "ripped off", a group of MPs has concluded.
It said some of the poorest people in the UK are being charged interest rates of up to 94% a year to buy TVs or washing machines.
The All Party Parliamentary Group on Debt and Personal Finance now wants the regulator to take action.
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