Carphone Warehouse has been hit with a £29.1m fine by the Financial Conduct Authority (FCA) for misselling Geek Squad, a mobile phone insurance product, between 2008 and 2015.
The electricals retailer parent company Dixons Carphone said it “accepts that in the past the company’s practices fell short” and has worked closely with the FCA over the course of its investigation.
The retailer was found by the financial regulatory body to have not met expected standards in its Geek Squad mobile phone insurance selling processes between December 2008 and June 2015.
The fine imposed on Carphone Warehouse is inclusive of a discount applied on early settlement of the investigation.
The FCA said that the electricals retailer “has made significant improvements to its approach to regulatory matters since 2015, which include more comprehensive customer-needs assessment, increased staff training and a greater number of independent financial service coaches across its store estate.
Dixons Carphone said it accounted for this charge in its exceptional cashflow guidance at the interim results mark in December, and as a result its full-year guidance remains unchanged.
Chief executive Alex Baldock said: “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.”
Retail Week Live 2019
Alex Baldock is a keynote speaker at Retail Week Live on March 28, at London’s InterContinental O2 hotel.
To check out the packed programme, and book your tickets, click here.