Rent-to-own retailer BrightHouse has announced it is trialing a loan product at 14 of its branches across North East of England.
The three-month trial will be available to existing customers, with loans of between £200 and £500 offered for a fixed period of 18 months at an APR of 149 percent.
The service, called BrightLoans, is only available to selected, existing customers who have had an agreement with BrightHouse for more than six months. BrightHouse stressed that customers applying for loans will be required to undertake an affordability assessment, as is the case when applying for any additional BrightHouse product.
The stores participating in the trial are: Peterlee; Middlesbrough; Sunderland; Bishop Auckland; Stockton; Darlington; Hartlepool; Redcar; Consett; Scarborough; Bridlington; Newton Aycliffe; Seaham and Billingham.
BrightHouse chief executive, Hamish Paton, said: “After carefully listening to some of our most loyal customers, we have decided to test the attractiveness of offering cash loans.
“BrightLoans, initially being trailed in the Teesside area, will be a simple, straightforward and competitively priced offer that will help our customers in their daily lives. These loans are only open to existing customers and those applying will be subject to the same strict affordability that underpins our entire offer.”