Cross-party meeting arranged

MPs to hear evidence on ScottishPower ‘mis-selling’

scottishpowerA cross-party group of MPs have confirmed a date to take evidence from witnesses on a long-running dispute involving customers of ScottishPower.

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

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.

New evidence was presented to the Department for Business and Innovation in July this year. Business Secretary Sajid Javid (pictured) expressed interest in the dispute in a meeting with Andrew Percy, chairman of the All Party Parliamentary Group which is investigating the claims.

On 2 December MPs will hear evidence from the whistleblower Alan Campbell, chief executive of the Ombudsman Service, ScottishPower and liquidator firms.

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