FCA swoops on firm amid mis-selling of theft and accidental damage
Rent-to-own firm PerfectHome has agreed to pay £2.1m customer compensation for unfair treatment of customers.
The FCA found PerfectHome charged some customers for late fees on insurance, contrary to its own policy.
The regulator also found they charged for insurance even before the goods were delivered.
Accidental damage and theft insurance were the products mis-sold.
PerftectHome also got into trouble over its lending practices in which it offers customers flexible payments on household goods.
The Birmingham-based firm offered 2,000 customers loans they could not afford.
Customers who took out unaffordable lending will receive £1.7m, with the rest of the redress for the insurance blunders.
PerfectHome chief executive Mike Sweetland said: “Our processes around theft and accidental damage insurance, cancelled sales and a smaller number of affordability checks did fail some of our customers and have all been stopped.
“We wish to say sorry to our customers and we’re putting that right. Those affected will be receiving letters from me personally with information about their redress payments which will be made by cheque or balance adjustments.”
PerfectHome is the latest example of the FCA taking a much more active role in cracking down on unfair selling of insurance on consumer goods.
In July 2016, the FCA launched a crackdown on appointed representatives, with consumers being mis-sold warranties bought from high street retailers specialising in electronics and white goods.
A year earlier the FCA warned that customers were still being unfairly sold mobile phone insurance - an area of serious concern for the regulator.
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