Moved by
Baroness Hayter of Kentish Town
105L: After Clause 86, insert the following new Clause—
“Practices of rent-to-own companies
(1) This section applies to credit agreements and consumer hire agreements taken out in respect of household goods specified in rules by the Financial Conduct Authority.
(2) The rules under subsection (1) shall—
(a) include a requirement on lenders to include in pre-contractual information adequate explanations and information allowing prospective customers to compare both the cash price of goods and the total cost of the credit agreement to a representative retail price for those goods;
(b) prohibit lenders from requiring customers to take out insurance sold or brokered by the lender as a condition of obtaining credit;
(c) set out specific steps lenders must take before taking action to enforce the agreement or recover possession of goods; and
(d) set out the steps lenders should take to check that the agreement is affordable and suitable for prospective consumers.”