Direct mail order and online business Express Gifts has agreed to provide £12.5m redress to around 330,000 customers who were sold insurance that offered “little or no value”.
Insurance products sold by the northwest-based business covered against accidental damage and theft for all products purchased from its Ace and Studio brands, both of which offers discounted clothing and footwear including top brand names such as Adidas, Nike, K Swiss, Timberland and Skechers.
The insurance was called “property insurance” from January 2005 to August 2007 and “purchase protection insurance” from September 2008 to May 2015. The cover is no longer offered.
After conducting its own quality assurance activity, the firm agreed with the Financial Conduct Authority (FCA) that the cover it had sold did not provide adequate value to customers because although it covered all items purchased, these were predominantly items of clothing, which customers would not generally consider insuring.
Express Gifts said it will write to all affected customers with details of how they will be paid the redress due, which will be sent automatically.