Regulatory Alerts2018-11-21
Added · Updated
CP18/35: Rent-to-own and alternatives to high-cost credit – feedback on CP18/12 and consultation on a price cap
The document proposes a price cap on the rent-to-own market effective from 1 April 2019, limiting credit charges to no more than the cost of the product and requiring firms to benchmark product costs against three other retailers. It also establishes final rules banning the point-of-sale sale of extended warranties alongside rent-to-own agreements, mandating a two-day cooling-off period for consumer opt-in and specific information disclosures. These measures apply to firms offering hire purchase, conditional sale, and consumer hire products, as well as providers of alternatives to high-cost credit.