£500 for a £200 washing machine.

[MARTIN3030]

Its an article from 2010,and details from pretty hard hitting facts.

 

http://www.guardian.co.uk/money/2010/oct/30/pay-as-you-view-debts

[Lefty]

Yes, I've seen that article before. And although quite hard-hitting, it still misses the point, IMHO.

 

I am really pleased that a senior director from BAYV has finally taken up the challenge, and has agreed to adress consumer concerns and problems here at CAG. Hopefully, only good will come of this.

 

BAYV are very similar to BrightHouse in the way they operate, although the coin-op TV system appears to be unique to them. However, the big problem I have with BAYV is with re-financed agreements. This is BY FAR the most common complaint we get here at CAG.

 

BAYV seem to be the only rent-to-own retailer who adopt this system. And it works like this:

 

A customer orders a TV to be paid for over, say, 3 years... 2 years into the agreement the customer is encouraged to order another item (DVD player for instance). What then happens is the new item, and the remaining balance on the TV, is rolled into one brand new agreement (again spread over 3 years) meaning the original TV will have an additional two years of finance added.

 

In contrast, BrightHouse will ALWAYS apply a NEW agreement to each new item ordered, and the customer sees a gradual decrease in their weekly payments, and actually gets to OWN the items they originally ordered after the agreed time. This does NOT happen with the BAYV system. I have come across BAYV customers who have been paying for the same TV for over 7 years!

 

If BAYV are genuinely serious about presenting themselves as a responsible and transparent lender, then THIS practise needs to stop.

 

Cheers

Lefty

[MARTIN3030]

Good points Lefty-well here is their chance.

I know there are many blogs and others who have documented some horror stories.

The CAG initiative allows for a response and if they can be seen to be addressing unfair business practices then that will be a start.

No doubt we will see reservations and mixed reactions from those who have had some bad experiences,but that is to be expected.

CAG members will judge their intent by the results we will see.

It has to be said that in the current financial market,BAYV will be seeing an increase in their customer base,it is possible that some of these are people who 18 months ago had the ability to go and get their stuff by traditional means.

What we do know is that this is a target market and in tough times will flourish.

My take on this is that at the end of the day,everyone has a choice,and whether you go and buy a 32" TV secondhand from a charity shop for 40 quid or else want to pay over a grand for a Plasma from BAYV is something that is up to those shopping.

Lets remember though that the regulators and consumer protection avenues are very strong these days,and we have seen the OFT making determinations on some of the biggest players in the last 12 months.

BAVY are in business to make money,but there is a heavy price to pay if that money is not made by following the rules.In consideration that they say they get a good proportion of business from word of mouth,in 2011 those mouths need to be sounding out more positives than what we are aware of here on the CAG.

I am suprised actually that we have not seen litigation in some of the cases I have read.

 

Given that a good proportion of complainants are on benefits,they could fight them with fee remission.

 

 

Anyway,the CAG door is now open for them.