Is there a responsibility to protect vulnerable
customers from potentially misleading terms and conditions? There certainly was in the pay day loan
market where regulation was introduced to stop companies exploiting the poorest members of society. Now
the All-Party Parliamentary Group on Debt and Personal Finance has written to the
Financial Conduct Authority about rent-to-own (RTO) retailers such as
BrightHouse ‘cashing in’ on consumers’ difficulties. The Group make 20 recommendations to be used
as a new blueprint for the sector. Key
proposals include:
- a ban on warranties and insurance
- an investigation into the mis-selling of insurance
- safeguards to prevent customers losing essential items for which they have already made substantial payments
- transparency about the total cost of RTO agreements
One of the business benefits of ethical conduct is it reduces the risk/cost of regulatory action. Yet again it really isn't too bright in the
long-term to treat customers unfairly.
No comments:
Post a Comment