N Brown warns over higher complaint costs

N Brown says it now expects exceptional costs to be almost twice as much as the £12m previously announced, due to financial services customer complaint redress.

It said these costs are likely to be in the region of £22m to £24m for fiscal year 2017.

The Company added:

We now expect the cost of likely future complaints to be higher than our previous estimate for the following reasons:

– The Financial Conduct Authority’s (“FCA”) industry-wide deadline for complaints has been announced as August 2019, a year later than had previously been indicated

– We have experienced a greater than anticipated volume of complaints due to wider public awareness of the August 2019 deadline

– The age profile of complaints received are typically older than we had previously experienced, which increases the average redress amount; and

– An adjustment due to the Supreme Court judgment in the case of Plevin v Paragon Personal Finance Ltd, taking into account the final guidance and rules recently issued by the FCA.

At 2:29pm: (LON:BWNG) Brown N Group PLC share price was -4.75p at 205.25p

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