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HomeServe to scale back UK operations

Article by Simon Christopher
Posted: 28/5/2012 - Last updated: -
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The home emergency insurer HomeServe, which specialises in insurance against the need for home repairs, has announced it will scale back its UK operations. It's a response to news that the Financial Services Authority will carry out a full investigation into alleged mis-selling.

The company insists that all issues under investigation are historic and that it has completely overhauled its operations. After discovering potential problems last October it cancelled all sales calls while carrying out a review. It began handling inbound calls six weeks later, but only resumed outbound marketing calls this year.

The FSA is not detailing exactly what the investigation covers, though it appears misleading comments in scripts used by call centre staff may be part of the issue.

HomeServe has also promised to stop offering low premiums to new customer and then jacking them up when they come due for renewal. This doesn't appear to have been against any rules and thus may not be connected to the investigation.

The new developments come just weeks after the company was fined a record £750,000 for repeatedly making excessive levels of automated "silent calls" and breaching a ban on calling a person within 24 hours of getting their answerphone.



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