Carphone Warehouse has been fined £29m after a whistleblower tipped off the Financial Conduct Authority (FCA) that the firm has been miss-selling mobile device insurance.
The FCA found that there had been a failure by Carphone Warehouse to properly train staff on how to advise customers buying Geek Squad mobile phone insurance.
This lead to customers who already had mobile phone insurance cover, through their bank accounts and home insurance, to being persuaded to buy the Geek Squad product. In reality, the additional insurance offered little or no gain to these customers. Despite a high level of cancellations Carphone Warehouse then failed to act on this clear sign of mis-selling.
Customers who were unsure if they had the already had insurance or were just unsure if they wanted it were advised, as part of carphone warehouse staff training, to keep the insurance for 14 days as a trial and then cancel.
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