Home Retail Group Sets Aside £17m for Payment Protection Insurance

June 14, 2016
by admin in PPI News

Argos, Home Retail Group’s parent company, said it has earmarked a total of £30m for its store card troubles. It said it overcharged certain late payment fees, had mis-sold PPI on certain store cards and miscalculated certain repayments using store cards.

According to Home Retail, its internal investigation unveiled errors in calculations of late payment fees for Argos chain cardholders. It said the issue was quite widespread than initially thought.

The investigation, which initially focused on Home Retail Group’s best sales performance for two years discounting poor early spring weather and the £1.4 billion takeover by Sainsbury’s, went into full detail with the errors in service regarding store cards.

According to Home Retain Group Chief Executive John Walden, the store card compensation issue was not material but affected up to 10% of HRG’s consumers.

They earmarked about £17m for mis-sold PPI and store card payment errors. For consumers who were unfairly charged late fees, the store would provide the remainder.

Mr Walden assured all consumer claims would be taken cared of without worry.

In the recent months, stores are repaying consumer claims for mis-sold PPI. Debenhams is currently resolving store card PPI troubles with consumers amounting to £5.6m. GE Capital Bank, which Debenhams allowed to mis-sell PPI on its behalf, had its employees “rush” filling out forms for consumers that they fail to explain the policy’s terms and conditions and the available opt-out box in the forms.

Analysts noted that the manner the insurance were mis-sold is similar to the methods of bank employees. Bank employees would often claim PPI is a “stepping stone” to receive loan approval.