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Payouts to 'Buy as You View' customers | Payouts to 'Buy as You View' customers |
(35 minutes later) | |
Compensation is to be paid to 59,000 customers of Buy as You View, which rents out furniture, TVs and other electronic goods on hire purchase. | Compensation is to be paid to 59,000 customers of Buy as You View, which rents out furniture, TVs and other electronic goods on hire purchase. |
The City watchdog, the Financial Conduct Authority (FCA), raised concerns about the clarity of fees and the treatment of customers in arrears. | The City watchdog, the Financial Conduct Authority (FCA), raised concerns about the clarity of fees and the treatment of customers in arrears. |
It also questioned the way customers were given payment meters to restrict access to TVs. | It also questioned the way customers were given payment meters to restrict access to TVs. |
Dunraven Finance will pay £939,000 in compensation. | Dunraven Finance will pay £939,000 in compensation. |
The company, which uses the trading name Buy as You View, will pay an average of nearly £16 per customer, by adjusting bills or in cash payments. It will contact customers directly. | |
Chief executive Graham Clarke said: "We have worked closely with the FCA in recent months to address these issues and I am sorry to any of our customers who may have experienced difficulties as a result of us not achieving the high standards we set ourselves." | |
'Fair treatment' | |
Instead of the current policy of restricting access to the customer's television when payments are not received on time, the company will issue a default notice at least 14 days prior to restrictions. | |
It is also conducting a review of customers who may have been offered more credit than they should have been. | |
The vast majority of customers to receive compensation will do so as a result of fees applied to their accounts for unpaid direct debits since 2001. | The vast majority of customers to receive compensation will do so as a result of fees applied to their accounts for unpaid direct debits since 2001. |
Jonathan Davidson, from the FCA, said: "It is important that firms meet our standards, including carrying out proper creditworthiness assessment and making sure that those in difficulty are treated fairly. | Jonathan Davidson, from the FCA, said: "It is important that firms meet our standards, including carrying out proper creditworthiness assessment and making sure that those in difficulty are treated fairly. |
"We will continue, when necessary, to take action against inappropriate behaviour." | "We will continue, when necessary, to take action against inappropriate behaviour." |
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