Homeserve suspends sales until staff are retrained

Call centre staff are to be re-trained and new scripts are being written.

The publicly quoted company has been in contact with the Financial Services Authority (FSA) regarding the mis-selling.

Homeserve sells homeowners insurance to provide them with cover against blocked drains, burst pipes, boiler breakdowns, leaking roofs  and electrical problems.

Chief executive Richard Halpin said: "We are determined to ensure customers receive the highest standards of service and we have therefore taken swift action to address the issues identified by our review.  We have commenced a programme to re-train staff.  We will  resume marketing once we are confident that our sales processes meet the standards that we and our customers expect".

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