Is Rent-to-own credit sector a real help? - By: king loothar

A charity doing work for children has put up a warning about the rent-to-won suppliers who supply household appliances that they are doing exploitation of the people who lie in the low income group. The charity Barnardo was of the vie that the lenders who are into rent-to-own services should be asked to show the prices of an equivalent product of the household of any of the high street brand and then they should also make clarification of the rate of interest. It added that the Office of fair trading must also look into the matter of this marker which is morally bankrupt.
In their support many lenders offering rent-to-own services have offered arguments. A leading lender made it clear that by putting into use his services, the consumers were able to buy such kind of items which otherwise had a high price tag. Another leading rent-to-own service lending company with the name of Bright House made a point by calling themselves a lending company who is responsible. The issued a statement in which they said with the help of their rent-to-own model all kinds of families from the group that is of the low-income people, can easily make purchase such kinds of products which other wise they could not have been able to afford.
Office of Fair Trading made it clear that the actions which are taking place in the market to bring in changes in it can not be altered just like that. Contrary to these claims Bornardo had to say that the consumers buying from these services were a sum as high as 150 percent more from what the actual price of that household appliance was. It also showed an example where a person went into any agreement for three years with a quite popular rent-to-own service lender where he had to pay £1,074 for the fridge where the cost of the same fridge of a high street was £430. Apply for quick finance at 12 month cash loans and get funds quickly.
The chief executive of Barnardo, Anne Marie Carrie was of the view that the lending industry which is actually morally bankrupt is luring low income families into their traps as these families might have vulnerable due to these difficult financial situations. In this way, instead of getting out of the trouble, they are further pushed into the condition of poverty. She pleads the government as well as OFT to take look into the matter and take some strict actions against them.

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King Loothar is expert financial adviser. He gives his expert views on finance UK. He writes articles for 12 month cash loans @ http://www.12monthcashloan.co.uk/ 12 month payday loans and 12 month cash loans bad credit. For blog commenting please visit - http://jobbtarhely.net/

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