Homeserve hit with record £30m fine as regulators expose "serious long-running failings"

Home repair insurance company Homeserve has been slapped with a record fine of over £30m and ordered to pay millions more back to customers following a series of “serious, systematic long-running failings”, according to regulators.

The Financial Conduct Authority (FCA) said that it discovered a mis-selling scandal that ran between 2005 and 2011, in which Homeserve had a profit driven culture where sales targets were hit by taking advantage of existing customers.

In addition to the fine, Homeserve has already paid £12.9m out to affected customers and is expected to pay out a total of £16.8m.

FCA director Tracey McDermott said: “Homeserve is another example of a firm that has acted without proper regard for its customers over a long period of time.

“Homeserve promises to provide customers with peace of mind when things go wrong. In fact the firm’s culture, controls and remuneration structures meant that staff were focused on quantity not quality and there were customers that paid the price for that.”

Ofcom had already fined the insurance firm £750,000 in 2012 for silent and abandoned calls.

Homeserve said that the firm has now overhauled its management team and systems since the matters came to light two years ago.

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