British emergency repair and insurance group HomeServe said on Monday that it was addressing a number of mis-handled customer complaints, just days after suspending its telesales operations in a separate incident.
The company, whose shares shed a third of their value on Monday after it suspended telesales at the weekend, said in a statement emailed to Reuters that it was revisiting a number of customer complaints made last winter where its procedures were not met.
There were some issues relating to our complaints procedures through last winter which we are taking steps to address. This issue is unrelated to the temporary suspension of our telephone sales and marketing activity, the FTSE 250-listed company said in response to questions from Reuters.
The latest developments come after HomeServe on Saturday said internal investigations, including one by auditor Deloitte, had uncovered possible mis-selling of products.
HomeServe, which sells insurance cover for, and fixes, burst pipes, broken boilers and drains, said that, similarly to its investigation into its sales procedures, the Financial Services Authority had been kept informed of its progress.
The FSA would not comment when contacted by Reuters.
The group said that last winter's cold snap, which was the UK's worst in 100 years, had led to an unprecedented number of claims on its policies and an unusually large number of complaints.
It said that it had hired an additional 140 claims agents ahead of this year's winter period.
The news is another blow to the company which is approaching one of its crucial marketing periods as customers seek cover on boilers and pipes ahead of the winter months.
HomeServe, which also operates in the United States, France, Spain, Belgium and Italy serving over 5 million customers, has said it remains on track to meet market forecasts for full-year profit, although some city analysts have said earnings beyond the current fiscal year could be affected.
Shares in the company, which saw nearly 500 million pounds wiped off its value on Monday, closed down 28 percent at 485.3 pence in London, valuing it at around 1.1 billion pounds.
(Editing by Hans-Juergen Peters)