Carphone Warehouse fined over £29million for mis-selling phone insurance

Carphone Warehouse fined over £29million for mis-selling phone insurance

DIXONS Carphone Warehouse has been fined £29.1million by the city watchdog for mis-selling “Geek Squad” phone insurance policy.
The policy, which also offered technical support, was offered as an add-on to customers’ phone contracts even if they didn’t need it.
Getty – Contributor Carphone Warehouse has been fined more than £29million by the FCA
An investigation by the Financial Conduct Authority (FCA) found that the sales team were being trained to push the policy onto customers even if they were protected through their home insurance or ones offered through their bank accounts.
The FCA told The Sun that the mobile phone company is offering voluntary compensation to customers and that some who have complained have already received a payout.
The policies were mis-sold between December 2008 and June 2015.
The firm sold £444.7million worth of policies during this time and that a “very large number” of them were mis-sold, although the watchdog won’t put an exact figure on this.
How do I contact Carphone Warehouse for compensation?CUSTOMERS who feel that they were mis-sold the Geek Squad insurance policy should get in touch with Carphone Warehouse directly. Here’s how:

Customers who think they were mis-sold Geek Squad are being urged to contact Carphone Warehouse.
The FCA was alerted to the scandal by whistleblowers, who highlighted that a high proportion of the policies were cancelled early – around 35 per cent of them were terminated within three months of taking them out.
Mark Steward from the FCA, said: “The Carphone Warehouse and its staff persuaded customers to purchase the Geek Squad product which in some cases had little to no value because the customer already had insurance cover.
“The high level of cancellations should have been a clear indicator to the management of mis-selling.
“Without whistleblowers coming forward, these practices may never have come to light. In the past few years, whistleblowers have contributed critical intelligence to the enforcement actions we have taken against firms and individuals.”
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Alex Baldock, group chief executive at Carphone Warehouse told The Sun: “We’re obviously disappointed that Carphone Warehouse fell short in the past.
“But we’re a very different business today; as the FCA acknowledges, we’ve made significant improvements since 2015.
“We’re committed to stay on that trajectory, and to make sure all customers enjoy the right technology products and services for them.”

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