Mail order business to refund £12.5m to customers

Direct mail order and online business Express Gifts, which has operations in East Lancashire, is to refund £12.5m to around 330,000 customers sold insurance that “offered little or no value”.

The insurance products sold by Express Gifts covered against accidental damage and theft for all products purchased from its Ace or Studio brands.

The FCA said that after conducting its own quality assurance activity, the business agreed with the authority that the insurance cover it had sold did not provide adequate value to customers.

Jonathan Davidson, director of supervision – retail and authorisations at the FCA, said: “It is good news for consumers that Express Gifts has reached agreement with us that this insurance was of low value to customers. It is important that firms offer value for money.

“There is a responsibility on firms, whether they are responsible for the design or the distribution of these products, to ensure the products offer value for their customers.”