Friday, January 15, 2021

Findel turns itself in to FCA promising to repay £12.5 million

The Mike Ashley-backed online retailer Express Gifts, has promised to pay £12.5 million back to consumers who were sold superfluous insurance products.

One the two main divisions of parent company Findel, Express Gifts was found to have sold insurance to 330,000 customers over a period of 10 years which “offered little or no value”.

The company reported itself to the Financial Conduct Authority (FCA) after conducting an internal review.

It has pledged to contact all of the customers who were impacted and reimburse them.

“This programme is the result of a thematic review that Express Gifts undertook into financial products sold in the past. After identifying this situation, the company notified the FCA and has worked with them to address the matter,” Express Gifts said in a statement.

READ MORE: Ian Burke takes the reigns at Findel as executive chairman

In 2015, Sports Direct boss Ashley bought a stake in Findel. 

This was seen as an attempt, which was ultimately unsuccessful, to block the sale of football shirt retailer Kitbag.

Since then Ashley has grown his stake in the business to nearly 30 per cent.

FCA’s director of supervision, retail and authorisations Jonathan Davidson said: “It is good news for consumers that Express Gifts has reached agreement with us that this insurance was of low value to customers.”

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