Mis-sold financial services products set to cost N Brown up to £24m

Simply Be is an N Brown brand

Mis-sold financial services products by Manchester-based home shopping group N Brown are to cost the company between £22m and £24m.

The company has had made provision for £12m of exceptional costs for its 2017 financial year, but now ways an additional £9m has now been set aside. “We now expect the cost of likely future complaints to be higher than our previous estimate,” the company said.

The reasons for this is that the Financial Conduct Authority’s industry-wide deadline for complaints has been announced as August 2019, a year later than had previously been indicated, N Brown said.

The company has also “experienced a greater than anticipated volume of complaints due to wider public awareness of the August, 2019 deadline”.

The age profile of complaints received are also typically older than the company had previously experienced, which increases the average redress amount.

Also, an adjustment due to the Supreme Court judgment in the case of Plevin v Paragon Personal Finance Ltd, taking into account the final guidance and rules recently issued by the FCA is expected to be made.

“We therefore expect to incur an FY17 exceptional cost related to financial services customer complaint redress in the region of £22m – £24m,” the company said. “The cash cost associated with this exceptional item will be incurred over the period to August 2019.

Its FY17 full year results will be announced on April 27.

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