LONDON, Nov 22 (Reuters) - Britain’s markets watchdog has proposed a cap on prices people pay for household goods like televisions and washing machines bought on “rent-to-own” credit from April next year.
Rent-to-own (RTO) credit involves consumers paying a weekly sum for three years, and they typically end up paying three to four times what they would have paid for the item in cash at the start.
“Under the proposed cap, credit charges cannot be more than the cost of the product. In addition, RTO firms will need to benchmark the cost of products against the prices charged by three other retailers,” the Financial Conduct Authority said in a statement on Thursday. (Reporting by Huw Jones, editing by Silvia Aloisi)