Homeserve fined £34.5m for ‘mis-selling’
Monday 13 January 2014
Homeserve was today handed a £34.5 million fine by the City regulator after an investigation into alleged mis-selling at the emergency repairs group.
The penalty from the Financial Conduct Authority was higher than the company expected, even after a 30% discount for early settlement.
However, shares still rose more than 3% as analysts claimed Homeserve was close to putting the issue behind it.
HomeServe, which provides cover for household emergencies such as broken boilers, suspended all its telephone sales and marketing operations back in 2011 after an independent report found call centre staff were mis-selling products.
The company has since cut jobs, overhauled its rules and regulations and also received a £750,000 fine from Ofcom.
“The ongoing activities of the UK business are unaffected by this notice and the business continues to trade in line with expectations,” Homeserve said in a statement.
Liberum Capital today raised its target price on Homeserve’s shares from 250p to 330p.
The broker added that it believes “Homeserve has taken a major step in putting regulatory issues behind it… UK customer growth is ahead and cost savings are on track. There is modest growth in France with high retention and strong US customer growth.”
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 3 Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
- 4 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
- 5 Google search history can now be downloaded in its entirety, mass embarrassment expected
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
iJobs Money & Business
£12000 - £15000 per annum: Recruitment Genius: An expanding Insurance Brokerag...
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...