Homeserve fined £30m by FCA for 'serious, systemic and long-running failings'
Watchdog said Homeserve had taken advantage of its customers between 2005 and 2011
Thursday 13 February 2014
Emergency repairs group Homeserve was today fined £30.6 million by the City regular for mis-selling insurance policies to customers over six years.
The penalty is £4 million less than originally expected and follows an 18-month investigation by the Financial Conduct Authority.
The probe covered the mis-selling of household emergency policies between 2005 to 2011, as well as poor handling of customer complaints by the group, whose products include boiler and central heating breakdown cover and insurance against blocked drains.
Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “Homeserve promises to provide customers with peace of mind when things go wrong. In fact the firm’s culture, controls and remuneration structures meant that staff were focused on quantity not quality and there were customers who paid the price for that.”
Homeserve, founded by Richard Harpin as a joint venture with South Staffordshire Water, has already paid out £12.9 million in compensation to customers and said it expects to pay out up to £16.8 million. Harpin said: “We have transformed the business by retraining staff. We have worked hard to put customers back at the heart of our business.”
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 4 How the language you speak changes your view of the world
General Election 2015: Fishing is on Nigel Farage's mind as he casts a line to the disaffected of Grimsby
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...