28 March 2016 - Janet Bird
A company which provides store cards to Debenhams, House of Fraser and Topshop has pledged over £4 million in refunds to customers charged unfair fees.
An independent survey commissioned by store card provider NewDay, which also provides credit cards branded Opus, Aqua and Marbles for those with poor credit ratings, found around three percent of its customers had suffered unfair charges.
After discussions with City watchdog the Financial Conduct Authority (FCA), NewDay has promised to make redress.
Over 5.4 million customers have NewDay store cards, which can be used in Debenhams, House of Fraser, BHS, Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topman/Topshop and Wallis, but the company says only around 180,000 customers have been affected and are eligible for refunds.
The average amount of redress will be £20 and the compensation covers the period from 1 April 2014 to 1 January 2016.
NewDay will contact affected customers over the next three months and will offer them either a cheque or credit on their accounts.