Homeserve fined £34.5m for mis-selling

13 January 2014

homeserve Homeserve has been slapped with a £34.5 million fine by the City regulator after an investigation found that they'd been guilty of mis-selling.

The company, who provide emergency household repairs for things like knackered boilers, stopped all telesales and marketing in 2011 after a report found call centre staff were mis-selling products to customers.

They have already been fined £750,000 by Ofcom and had to redraft their house rules and cut a number of jobs. However, this latest fine was higher than Homeserve expected, even accounting for the 30% discount you get for paying up early.

"The ongoing activities of the UK business are unaffected by this notice and the business continues to trade in line with expectations," Homeserve said in a statement.

Homeserve shares have risen though as the market appears to think that the company has sorted itself out and the worst is now behind it.

TOPICS:   Government


  • Marky M.
    Excellent news - maybe Smuggins who owns it will have to sell his helicopter. I had boiler insurance with them and on renewal the premiums had gone up by 20% plus there was a (from memory) £6 "administration fee". Exactly what administration is required to have an existing standing order continue for another year? Answer: none whatsoever. It was a bogus charge for doing no work. Needless to say, I didn't renew when they tried it on again in the third year.
  • Peter P.
    Anyone who signs up for a insurance plan like this deserves all they get. The idiots need to realise self insurance is the future - stick £20 a month away to cover any repairs and the service, if it's not needed you've got a nice little bonus, if it is you will probably still end up with a smaller bonus.
  • Lincoln L.
    Why is everyone so gleeful at this company's fine? They gave me excellent service for many years. You just have to say No when they try to sell you some bolt on. It's a free market. But now we expect the nanny state to interfere. It means in the long term the discerning purchaser will get a worse deal.
  • Danny R.
    It's good they got a big fine. At least going forward the fca will keep a close eye on homeserve. I believe this will make the company stronger and more structured going forward to ensure all customer are treated fairly. I used them in the past when my water supply pipe burst , i have to admit It was a first class service, yes I could have saved £4 a month and self insured but in the middle of the night when you got water everywhere the last thing I want to do is play the lottery game with the yellow pages. Plus with self insuring how much would it have cost for the repair if I had to have my block paving dig up and a new pipe put in- homeserve even put the block paving back aswell. I initially tried calling my water company but cause it was on my property boundary they said it's my responsibility Some people just want to pick up the phone and have no stress delay and inconvenience.
  • Mandy
    I got sold this insurance. They said I'd need it when my boiler broke down ... but my boiler didn't break down so it's a pretty cut and shut case of misselling. They should only sell you products that you will need, not ones which you probably won't. I also bought life insurance, and am still alive ... so I reckon I'm due a refund on that too. And don't get me started on that volcano insurance ...
  • Greek D.
    I work for HS and we don't 'sell' anything. Although I am on a sales team which is called a sales team I am not selling, I am just letting customers know about the options they have. Even though I am not selling, if enough customers don't sign up I am penalised and told I can lose my job. This doesn't cause me to miss sell in any way all day every day, because like I say I am not selling things.
  • Jay
    Worked here as engineer for a long time,the longest hours and worst pay in the industry despite record profits,all target and kpi driven,push push push,must hit quantity targets regardless.managers who don't listen or understand the reactive plumbing industry,will ride roughshod over staff to hit their targets and justify their own existence .pretty much every engineer stressed and unhappy don't go there

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