Argos has put aside an extra £30 million to refund customers who were unfairly charged late fees on its store cards, the company announced in a trading update today.
The staggering figure is on top of provisions announced in its 2015/16 financial statement to cover excessive late payment fees that were “erroneously collected” from store card customers.
A spokesperson for Home Retail Group says only Argos store cardholders are affected, not customers of other Home Retail Group brands, such as Habitat, or the recently sold Homebase.
Argos is investigating how customers were wrongly charged these fees.
The Office of Fair Trading suggests late payment fees should be no more than £12.
John Walden, chief executive of Home Retail Group says “It’s not a material number of customers and not a material amount of money per customer.”
“But for each customer it matters. We will address it and treat customers fairly.”
I have an Argos store card – will I get any money back?
Home Retail Group has confirmed it will write to all affected customers in the coming weeks.
With the company setting aside £30m to cover the bill and with media reports suggesting typical refunds could be in the region of £100, it’s reasonable to assume that vast numbers of store cardholders could be in line for a refund.
However a spokesperson for Home Retail Group rejected the £100 figure and declined to comment on both average refunds and the number of customers affected.