FCA Finds Inadequate Training and High Cancellation Rates

  • Carphone Warehouse fined £29m by FCA for mis-selling Geek Squad product
  • FCA found inadequate training of sales consultants
  • High proportion of policies cancelled early, indicating mis-selling risk
  • Company made improvements since 2015
  • Two customer redress programmes carried out voluntarily

The Financial Conduct Authority (FCA) has fined Carphone Warehouse £29,107,600 for failings that led to the mis-selling of Geek Squad, a mobile phone insurance and technical support product. The FCA found that sales consultants were not trained adequately to assess customer needs and often recommended the product to those who already had cover through other means. A high proportion of policies were cancelled early, indicating mis-selling risk. Carphone Warehouse has since introduced improvements in customer needs assessment, training, compliance monitoring, and customer service.

Factuality Level: 9
Factuality Justification: The article provides accurate information about the FCA’s findings against Carphone Warehouse for mis-selling Geek Squad, details of the fine imposed, and the company’s response to the issue. It also includes relevant quotes from the FCA and Carphone Warehouse executives. The article is focused on the main topic without any digressions or irrelevant information.
Noise Level: 6
Noise Justification: The article provides relevant information about a fine imposed on Carphone Warehouse for mis-selling Geek Squad policies and the measures taken by the company to improve its practices since then. However, it could have included more details on the extent of the mis-selling and the impact on customers.
Financial Relevance: Yes
Financial Markets Impacted: Carphone Warehouse
Financial Rating Justification: The article discusses a fine imposed on Carphone Warehouse by the Financial Conduct Authority (FCA) for mis-selling of Geek Squad, a mobile phone insurance and technical support product. This impacts the company’s financial situation and reputation.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The situation described involves a financial penalty and mis-selling of a product, but it does not meet the criteria for any other category.

Reported publicly: www.retailsector.co.uk