What is an administration?
An administration is an insolvency procedure regulated by the Insolvency Act 1986. The Administrator’s role is to realise the assets and distribute them for the benefit of creditors.
The administration has been extended until 29 March 2023.
The Joint Administrators will provide regular updates to creditors via their progress reports, available on Companies House.
What does the appointment of Joint Administrators mean for BrightHouse customers?
Following the appointment of the Joint Administrators:
- There will be no new rent-to-own or cash loan lending activity
- All outstanding rent-to-own and cash loans remained subject to the terms agreed with BrightHouse
- All collection methods have now ceased for the Company and Customer accounts and credit files will be duly updated in accordance with a framework agreed with the FCA
- Servicing, Warranties, Repairs & Insurance claims ceased on 12th November 2022.
The companies continue to be regulated by the Financial Conduct Authority (‘FCA’) and the Joint Administrators are in contact with the FCA as appropriate, supporting customers and claimants where possible during this period.
Who are the Joint Administrators?
Chris Laverty and Helen Dale were appointed as Joint Administrators of Caversham Finance Limited trading as BrightHouse on 30th March 2020.
Chris Laverty, Andrew Charters and Sarah O’Toole were appointed as Joint Administrators of Caversham Trading Limited, BrightHouse logistics and engineering business on 30th March 2020.
The Joint Administrators are qualified insolvency practitioners, regulated by the Insolvency Practitioners Association.
The Joint Administrators act independently of the Company and the directors for the benefit of all creditors and stakeholders. Their primary concern and mandate is to ensure that they maximise the returns to creditors.
How will my data be protected in the administration process?
The Joint Administrators may need to access and use data relating to borrowers. In doing so, the Joint Administrators must abide by data protection requirements.
Information about the use and storage of personal data can be found at www.grantthornton.co.uk/en/privacy/ and is supplemented by Clause 10 of Grant Thornton’s terms and conditions at www.grantthornton.co.uk/globalassets/1.-member-firms/united-kingdom/pdf/search/terms-conditions.pdf
I am owed money by BrightHouse. When will I receive what I am owed?
If you have submitted a claim, you may be considered an unsecured creditor of either company. However, please note that the Joint Administrators of CFL, under the court order dated 20 May 2022, were granted permission by the court to disapply the prescribed part on the basis that the likely costs associated with processing such a dividend will be greater than funds available to distribute. Accordingly, a dividend will not be payable to its unsecured creditors.
For CTL, as it has been fully funded by CFL during the administration it will not make sufficient floating charge realisations to enable any monies to be set aside for the benefit of the unsecured creditors. Accordingly, a dividend will also not be payable to its unsecured creditors.
Will I be able to access my account during the Administration?
Your account will either have been terminated (closed) with BrightHouse or is now managed by a third party called Perch Capital Limited.
You can view information regarding Perch Capital Limited's account management here www.brighthouse.co.uk/perch-capital-limited
Am I eligible to make an affordability Redress Claim?
If you believe that you were provided with an unaffordable rent-to-own or cash loan agreement(s) (unaffordable agreement) through BrightHouse you may have an eligible claim.
Please note that any submitted Redress Claims will not be adjudicated on, and Customers will only be considered as unsecured creditors. As a result, and as explained above, due to the Prescribed Part disapplication, there will be no funds available for a dividend to be paid to either of the companies' unsecured creditors.
For more information, we suggest you visit guidance notes from the Financial Ombudsman: www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit
I have already received confirmation that my affordability claim has been agreed and the amount that I will receive. When will I receive this?
Claims for which a customer has not received payment but has been notified that they are entitled by a Final Response Letter ('FRL’) will now be considered as an unsecured creditor for the value of the FRL offer. As a result of the disapplication of the Prescribed Part, there will be no funds available to make a dividend payment to the unsecured creditors of either company.
Will the FSCS pay my claim if BrightHouse/Administrators do not?
No, the FSCS does not cover claims under consumer credit agreements. See https://www.fca.org.uk/publication/consultation/cp16-42.pdf
Where can I get additional advice?
If you would like advice about how to manage your debts, you can do this for free by contacting:
Citizens’ Advice Bureau:
Website: www.nacab.org.uk
Step Change
Telephone: 0800 138 1111
Website: www.stepchange.org
National Debtline
Telephone: 0808 808 4000
Website: www.nationaldebtline.co.uk
Have the Joint Administrators sold any customer agreements?
Yes. The Joint Administrators have sold various customer agreements to a third-party company, Perch Capital Limited (the Purchaser).
The Purchaser has subsequently appointed ACI-UK Ltd to manage these accounts.
Have all accounts been sold to a third party?
No. A number of customer accounts have not been included in the sale. The Joint Administrators have communicated with all customers separately in relation to the status of their accounts.
How do I know if my account has been sold and who to?
If your account has been sold you would have received a notice of assignment of outstanding debt from BrightHouse.
Have Perch Capital Limited purchased BrightHouse?
No. The Purchaser has only purchased certain agreements and customer accounts in the Caversham Finance Limited (in Administration) loan book. Any brands or digital assets, including the BrightHouse brand and BrightHouse domain name, remain the property of Caversham Finance Limited under the control of the Joint Administrators.
Please note the Purchaser did not purchase BrightHouse as a company or legal entity. BrightHouse remains in Administration under the control of the Joint Administrators.
What will happen to my data?
We will continue to retain records in line with regulatory requirements, with secure deletion when the retention periods have expired.
I wish to make a PIC Insurance complaint - who do I contact?
If you would like to raise a complaint. You can contact us by:
Email us at BrightHouse.Administrators.Team@uk.gt.com]
Please visit www.brighthouse.co.uk for our FAQs
