BrightHouse to reimburse customers as redress scheme agreed with FCA
BrightHouse has today announced a customer redress scheme following a review of past business practices. The business has worked closely with the Financial Conduct Authority (FCA) for more than two years to address issues identified with some of its legacy processes.
Chief Executive Hamish Paton said: “We sincerely apologise to those customers who were affected. Our top priority is to ensure that they are reimbursed as soon as possible. We’re absolutely determined that this doesn’t happen again and have made significant improvements over the last 18 months. The FCA recognised this when they confirmed in April that they are minded to authorise our business, subject to specific conditions.”
Two groups of customers are included in the scheme which was developed following engagement with the FCA and independently reviewed. The first group is those who, between April 2010 and April 2017, may not have received a refund of their initial payments when an agreement was cancelled within the first 14 days. These customers will receive an average payment of £27.
The second consists of those who took out an agreement between April 2014 and September 2016 and where our affordability assessments might not have been effective enough. These customers will receive an average payment of £147. Alternatively, if the customer retained the product, then the ownership will be transferred to them.
The total value of the scheme to customers is £14.8m. This includes not only the cash repayments of £6.5m but also the value of interest and fees on balances which have already been written-off in the normal course of business.
There is no need for customers to contact BrightHouse. By the end of the year personal letters will be sent to 213,000 past and current customers, explaining what they are due.
Customers can find more information at www.brighthouse.co.uk/fca-statement.
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