Lewis faces fine for selling pensioners retrenchment policies

10 July 2015 - 02:03 By Wendy Kowler


The country's largest furniture chain, Lewis, stands accused of selling employment loss and disability insurance policies to credit customers who were pensioners or self-employed and thus were not eligible for the cover. The National Credit Regulator began investigating the matter early this year after receiving a tip-off.It has referred the matter against Lewis Stores and Monarch Insurance - both part of the Lewis Group - to the National Consumer Tribunal, with a request that it imposes a fine on the Lewis Group, and orders the company to refund the affected consumers and conduct an audit."Pensioners and self-employed consumers are not employed and thus cannot be retrenched or become redundant from employment, so they should not be offered loss of employment cover as part of credit insurance," said Lesiba Mashapa, the regulator's company secretary.The disability cover credit customers were sold only applies to those who are unable to continue with their occupations after they are disabled, not pensioners.The Lewis Group said it was cooperating with the tribunal.

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