The credit process
The company has developed credit processes which underpin our commitment to be a responsible lender. We strive to ensure that our lending assessment practices are fair and transparent, and that the customer can afford to pay for the products we offer them. The processes are dynamic and are continuously refined to respond to changes in the lending environment.
We draw upon scientific analysis of our own customer base and of performance attributes that correlate to sound lending. These attributes have been identified over a number of years. They are built into a powerful and unique scorecard process, and a range of policy rules. This centralised scoring is highly predictive, and is supported by well trained store teams.
BrightHouse is a community business. Our store team’s extensive knowledge of its local community is an important factor. The final decision to offer an agreement rests with the Store Manager.
Our new store opening programme also increases the volume of previously unknown customers entering our business. Herein potentially lies a heightened credit risk. Our screening process for new customer approval is systematic and rigorous.
Customer track record
Our customers can establish a track record with BrightHouse. The individual customer payment history provides opportunity to access more products. Even so, any decision to extend further credit to an existing customer is subject to systemic review and affordability assessment. All existing customers have an up to date risk grade, and an appropriate credit limit, accessed in-store via a look-up file.
Our service goal is to ensure that a customer successfully reaches the end of an agreement, and thus takes ownership of the product. Inevitably, some customers encounter difficulties over the life of an agreement.
Early recognition of issues, and rapid constructive response, is vital to support our customers and to ensure they are treated fairly, whilst still controlling arrears. Therefore when a customer initially defaults, the store team aims to counsel the customer towards returning to on time payment.
If the customer continues to experience difficulties in repaying their agreement, the store team can apply a number of options to mitigate debt owed by the customer.
Any further escalation of arrears results in the collection process switching to internal or external agencies outside of the store. All assets relating to a default are written off at 90 days.
BrightHouse relationship with our customers start with, not ends, at the point of sale. We strive to be transparent in all that we do, continually reviewing our processes and behaviours to ensure customers are fairly treated with clear communication. We are members of the Plain English Campaign.
We have a robust training programme to ensure forbearance is taken in all collection activities.