Mobile phone insurer fined £2.8m

 
Michael Bow
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PHONES 4u mobile phone insurer Policy Administration Services (PAS) was yesterday handed a £2.8m fine by the city watchdog for poor complaints handling.

The Financial Conduct Authority said PAS ­– which handles complaints and customer relations for insurance policies sold by Phone 4u – failed to investigate complaints properly or to keep accurate records of complaints between June 2009 and September 2011.

It meant trends such as mis-selling went undetected and customers were not treated properly.

PAS has subsequently reviewed 7,099 complaints and paid compensation to 1,438 customers.

Phone 4u was not accused of any wrongdoing.

“We continue to work with the FCA to promote high standards of regulatory conduct within the industry,” PAS said.

PAS settled early with the FCA and subsequently qualified for a 30 per cent fine reduction.