Argos is facing a bill of £30million in compensation after admitting that thousands of store card customers were overcharged.
The company launched a thorough review into the matter, which relates to “buy now, pay later” plans for some of the retailer’s 1.5 million store card holders who were charged additional fees for late payments.
Chief Executive, John Walden said it affected up to 10% of Argos card customers.
Each customer is expected to receive a compensation of up to £100 and Home Retailer will be writing to affected customers in the following weeks.
The group said: “we found that a more extensive customer redress programme would be required than first thought when the issue was discovered earlier this year, increasing the likely cost by about £30m.”
The groups financial services division had learned it “had erroneously collected excess fees in relation to the late payment of amounts due from certain customers”.
Mr Walden said: “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.”
