Executives 'called to account'

Javid to confront ScottishPower over mis-selling claims

Sajid Javid twitterBusiness Secretary Sajid Javid has called for a meeting with ScottishPower executives over a long-running mis-selling dispute.

New evidence has been presented to the Department for Business and Innovation that claims more than half a million of the energy provider’s customers were impacted by a scandal more than a decade ago.

A campaign group claims customers lost out on £75 million following the collapse of a cashback warranty scheme in the early 2000s.

Mr Javid expressed interest in the dispute in a meeting with Andrew Percy, chairman of the All Party Parliamentary Group which is investigating the claims.

Daily Business has learned that the Business Secretary will be calling on ScottishPower to meet him.

Shoppers who bought a PowerPlan warranty on items such as fridges and washing machines were told they could get the money back after five years if they had not made a claim.

More than 750,000 such warranties were sold between 1998 and 2001, of which about 625,000 did not make a claim and were therefore eligible for the “cashback”.

However, by then ScottishPower had divested its chain of stores to Powerhouse, which subsequently went into administration.

Two firms which administered and insured the warranties also went bust, and attempts by their administrators to claim money from ScottishPower yielded only £6m.

Mr Percy’s meeting with the Business Secretary followed his raising the issue during Prime Minister’s Questions a fortnight ago. The cross-party group of MPs have written to stakeholders involved in the case notifying them of the group’s intention to call them for imminent evidence.

Following the meeting Mr Percy said: I absolutely welcome the Business Secretary’s intervention in this matter. The fact that over 625,000 people, many of whom could least afford to lose money, are still out of pocket so many years after the scheme’s collapse is a national scandal.

“There are still individuals at ScottishPower who oversaw this scheme at the time, and they have yet to be called to account. The Business Secretary’s support will I hope ensure that they do the right thing by their customers, and I look forward to working with him in bringing the truth to light.”

The dispute was resurrected last month when Mr Percy told the Prime Minister that a year later “very little has happened.”

He said: “In the light of the most recent evidence, will my right honourable friend urge ministers in the Department for Business, Innovation and Skills to look again at this issue, to get people back the money they are owed?”
David Cameron responded by saying he took the issue seriously and further action would be taken. “My honourable friend is absolutely right to raise that issue. I understand that the liquidation of the companies involved in the scheme is still under way.
“As a result, the creditors of the companies have not yet received the reports from the liquidators to see whether that money can be extracted.

2 Comments to Javid to confront ScottishPower over mis-selling claims

  1. Hi I am one of those people who bought from Scottish power in 1998 a video camera and paid £200 for insurance ,which was promised to be repaid if not claimed on .
    I bought the camera on my Credit card and although I still have the camera I no longer have any paper work , I was wondering if you could direct me somewhere to follow this up .
    I have only recently discovered there’s a chance I will get my money back .


    • Hello
      I suggest you try one of the following:

      Andrew Percy MP
      Contact: 01724 720800, andrew.percy.mp@parliament.uk

      Alan Campbell
      Contact: 07900 904 707

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