Lanark and Hamilton East MP Angela Crawley this week backed a new rent-to-own scheme piloted by Lanarkshire Credit Union.
Rent-to-own requires a consumer to pay a small amount each week, spread over a few years, and at the end of the payment period own the item.
The current market is said to exploit low paid workers who buy new products and, by the end of the payment programme, pay as much as four times the original price.
However, Lanarkshire Credit Union, have launched a programme to challenge the “rip-off” schemes by linking their current ethical loans to a furniture supplier that provides quality branded names at discounted prices.
After visiting the project, Angela said:
“The scourge of buy-to-rent stores charging exorbitant interest rates plagues high-streets across the country.
“Using these stores may seem like an attractive option and a quick fix at the time, but over the lifetime of the payment programme, the cost outweighs any product.
“I have assisted a number of constituents who have incurred huge debts as a result of these stores, and in some cases the product they have purchased and part-paid has been removed.
“I welcome this initiative which will hopefully challenge the market and encourage any of my constituents considering using a rent-to-buy scheme to use the Credit Union instead.
Commenting, Lanarkshire Credit Union’s Carolann Smillie said:
“When it comes to buying goods and spreading out the cost, often the only option is to pay excessively more for your items.
“It is our aim that this partnership will put an end to this practice and free up more money to allow people to lead a better life.”