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.