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Dixons Carphone slapped with £29.1mln fine for mis-selling phone insurance

Because Dixons has allowed for the fine its latest accounts and still expects to record a pre-tax profit of £300mln for its current financial year
carphone warehouse
Dixons merged with Carphone Warehouse back in the summer of 2014

Dixons Carphone Plc (LON:DC.) shares edged lower on Wednesday morning after the high street retailer was slapped with a £29.1mln fine for mis-selling mobile phone insurance.

Shares fell 1.5% at the opening bell to 130.8p, having climbed 10% in the opening two-and-a-bit months of 2019.

READ: Dixons Carphone​ upgraded by Morgan Stanley

An investigation from the UK’s Financial Conduct Authority found that Carphone Warehouse’s Geek Squad “did not meet expected standards” when selling insurance to customers between 2008 and 2015.

Falling short

The FTSE 250 company acknowledged that its practices had fallen short in the past.

Dixons had already allowed for the fine its latest accounts, which means it still expects to record a pre-tax profit of £300mln for the year to the end of April.

“We're obviously disappointed that Carphone Warehouse fell short in the past,” said chief executive Alex Baldock, who has been at the helm for just under a year.

“But we're a very different business today; as the FCA acknowledges, we've made significant improvements since 2015.

“We're committed to stay on that trajectory, and to make sure all customers enjoy the right technology products and services for them.”

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Dixons Carphone Plc Timeline

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