Argos-owned Home Retail Group said it would set aside about £30m to resolve claims from store card customers overcharged for late payment fees. About £17m of these are to resolve issues in store card payment errors and PPI mis-selling.
According to Home Retail Group Chief Executive John Walden, the miscalculation has affected up to 10 per cent of its customers. He said the issue isn’t the material number of customers but the “material amount of money per customer.”
He said that it treats customers fairly and they will address each issue per customer immediately.
Each consumer has the potential to receive £100 per PPI refund. Home Retail Group would be writing to consumers possibly affected with any of the three store card issues.
Calculations for the refund from the retail group’s PPI would take a different course from typical bank mis-sold PPI refund calculations.
Aside from Home Retail Group, Debenhams is refunding PPI from its own store cards sold on behalf of GE Capital Bank. It had set aside more than £10m to resolve the issues. According to store executives, retail representatives of GE Capital, focused on higher work volumes, deliberately rushed the fill-up process to have consumers miss the opt-out box for payment protection insurance.