Belfast Telegraph

N Brown expecting to pay out up to £40m over 'flawed' insurance products

Plus size retailer N Brown is to fork out up to £40 million in compensation to customers who were sold "flawed" insurance products by the firm.

The products, provided by a third party insurance underwriter, were sold to customers between 2006 and 2014.

N Brown said in a stock market announcement: "Following an assessment of the cost of potential customer redress, the group expects to incur an exceptional cost in this year's income statement in the range of £35 million to £40 million.

"The cashflow impact of this is forecast to occur from 2019 onward, and the group anticipates funding the full cost of customer redress from existing resources."

It follows a review prompted by a request from the Financial Conduct Authority that firms ensure general insurance products offer "value for their customers".

It is not the first time N Brown has taken a hit linked to financial products.

Earlier this year the retailer, which is behind the Power, Simply Be and Jacamo brands, was stung by exceptional costs relating to the mis-selling of PPI.

N Brown took a £25.2 million hit to cover compensation for customers after the deadline for settling claims was set for August 2019.

The retailer offers consumer credit via a business that helps shoppers pay for products.

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