Argos sales up but retail chain must refund customers £30MILLION after overcharge blunder
Computer error blamed for overcharging store-card holders up to £100
ARGOS is to repay £30million to customers after overcharging for late payments on store cards.
It blamed a computer error for charging around 10 per cent of card-carrying customers up to £100 too much.
They will receive only the excess charge and interest back, but no compensation.
Meanwhile yesterday the chain reported its best three-month sales in two years, with top-end TVs among the best-selling products ahead of Euro 2016.
Total sales have risen 2.6 per cent to £868million, boosted by a strong online performance.
The chain, owned by HOME RETAIL GROUP, is facing a £1.4billion takeover by supermarket SAINSBURY’S later this year.
Argos declined to say how many customers were affected by the overcharging error, but it is likely to be hundreds of thousands.
They will write to them in the next few weeks.
HRG chief exec John Walden said: “We will address it and treat customers fairly.”
We will address it and treat customers fairly
Argos had already put by £17million in its previous full-year results to cover charges.
This was mainly for the mis-selling of payment protection insurance, but also included an amount to carry store card payment errors.
Russ Mould, investment director at stockbroker AJ BELL said: “Any concerns that Argos might be distracted by its impending takeover by Sainsbury’s have been dispelled with latest sales figures showing the best performance for two years.”