FCA double whammy crackdown on rent-to-own price caps is welcome, says StepChange

Commenting on today’s announcement from the Financial Conduct Authority on its proposals to introduce a bespoke price cap in the rent-to-own credit market, StepChange Debt Charity is pleased to see the regulator addressing both the cost of credit and the cost of goods.

StepChange Head of Policy Peter Tutton said: “We are pleased that the FCA is addressing rent to own, where the high cost of goods and add-on warranties can make agreements expensive even compared to other types of high cost credit. The most financially vulnerable households cannot be left with no choice but the highest price on the high street. Fundamentally, we also need better alternatives for households who struggle to afford household needs, such as the cost of mending or replacing necessary household appliances.”