DONCASTER, U.K.–A nationwide campaign has been launched to stymie rent-to-own stores in this country that critics say charge thousands of pounds for household goods, far above their cost elsewhere. The campaign includes one CU that has set up its own rent-to-own store.
The effort is being led by former Labour leader Ed Miliband, who has joined with credit unions in the campaign. Miliband was quoted by the South Yorkshire Times as saying he wants to put an end to “the great British rip-off.”
Miliband, a Doncaster North MP, claimed a number of rent-to-own stores are enticing customers in with cheap weekly repayments for goods such as TVs and refrigerators, only for the total price to run into thousands of pounds over a number of years.
Miliband told the South Yorkshire Times that a number of constituents have told him how they think many rent-to-own stores are failing to make their customers fully clear on how much they will owe by “burying it in the small print.”
“There are a lot of people out there that get into debt and it can cause people untold misery,” said Miliband.
Miliband is urging consumers to use an alternative system offering “better value” set up by the credit union, which has recently launched its own “My Living” store in Mexborough, U.K., which sells household goods. The credit union said they had found one store selling a three-seater sofa for more than £2000, which involved paying £13 a week over three years.