Developing a code of practice for Rent to Own lenders

The Centre has supported work by Thrive and Church Action on Poverty to develop recommendations for a code of practice for the Rent to Own market. The work originated from a consumer campaign based in Stockton on Tees, which has successfully highlighted issues of concern in the rent to own market with lenders and regulators. Specific issues include:

A lack of data sharing, which may result in stubbornly high prices being charged to good payers;
Problems with the modification of agreements, which can result in delays in transferring the ownership of goods to the borrower
Lack of transparency over contract terms and conditions.

The Centre provided expert input into the development of a draft code for discussion with lenders, regulators, and other consumer groups in May 2010 and has subsequently drafted a set of recommendations for the Consumer Credit Trade Association (CCTA) to discuss with its Rent to Own company members. This was submitted to the CCTA in September 2010 and a response is currently awaited. For further information concerning this project, please contact Damon Gibbons