Lewis Refunds Customers $4.9 Million for Mis-Sold Insuranceby
Lewis Group Ltd., a South African furniture retailer and insurance provider, said it’s refunding customers 67.1 million rand ($4.9 million) for the cost of mis-sold policies plus interest.
“After an extensive internal investigation of all insurance transactions conducted since 2007, the group identified a minority of cases where loss of employment insurance policies were erroneously sold to pensioners and self-employed people,” the company said in a statement on Tuesday.
Lewis shares have slumped about 30 percent since the National Credit Regulator said on July 9 that it was referring the retailer to the Consumer Tribunal with the recommendation that it be fined for mis-selling insurance. The cases represent less than 1 percent of all insurance premiums earned by the group over the past eight years, Lewis said.
“Lewis has taken widespread corrective action and implemented further control measures to prevent any further instances of such sales taking place,” the company said.
The stock gained 1 percent to 63.27 rand as of 12:08 p.m. in Johannesburg, paring the year’s decline at 15 percent. That values the company at 6.2 billion rand.