The Financial Conduct Authority (FCA) has fined Carphone Warehouse £29m for the mis-selling practices of its subsidiary brand ‘Geek Squad’. The FCA found that thousands of Geek Squad customer were persuaded to purchase insurance, even though they already had mobile phone insurance through their home insurance or via an insurance product connected to their bank account.
The staff at Geek Squad were not adequately trained to understand the customers’ situation, according to the FCA. Furthermore, staff employed aggressive selling techniques to overcome objections. Even when customers stated that they already had insurance, staff were told to push the insurance.
The FCA also found that the company ignored signs of mis-selling. In the period of December 2008 and June 2015, 35% of Geek Squad sales were cancelled within 3 months of purchase.
Carphone Warehouse was fined £29.1m, reduced from £41m as the company admitted fault. Carphone Warehouse made sales of £444m over the period 2008 to 2015, excluding refunded sales.
This is a perfect example of why a Bills Dashboard account would be useful. Many people faced with mis-selling can not find their original documents. Storing this kind of document, or contract information on Bills Dashboard would enable users to quickly find the correct account information. Obtaining redress would be much easier with all the correct documentation to hand.
When you switch or close an account, simply move that entry into the Archive for permanent storage within your account. You can come back to it later if you need to follow up on a complaint or a mis-selling issue. Sign up for a free Bills Dashboard account and start taking control of your household bills.