Indexia trial opens in Paris for deceptive commercial practices

The Indexia group and its leader, Sadri Fegaier, are at the center of a trial in Paris which begins this Monday, September 23. A trial expected for commercial practices deemed misleading by the alleged victims.

It was a French success story. The main character: a bold business leader looking to establish himself locally, first in his native lands, in the Drôme, in Romans-sur Isère, then in Roanne in the Loire. The Société Française d’Assurance Multimédia then became one of the most sought-after employers by employees, particularly thanks to the attractive remuneration it offered. But within five years, the company, targeted by thousands of customer complaints, was placed in receivership.

The Paris judicial court will have to rule on accusations of deceptive business practices regarding cancellations and refunds related to insurance contracts for telephones and multimedia products. The companies involved include SFK Group, SFAM Celside Insurance, Foriou, Cyrana, Hubside and Serena. The investigation, covering alleged violations that took place between 2014 and 2022, accuses the group of deliberately complicating the process for customers seeking to cancel their contracts, thereby discouraging their efforts.

Insurance contracts at the origin of the accusations

Indexia, known for its insurance offered in stores such as Fnac-Darty, is accused of having trapped hundreds of consumers. When purchasing electronic products, insurance, at a modest initial cost of around 15 euros per month, was often added to the transaction. However, many customers found themselves faced with increasing charges, going up to thousands of euros, without always having fully understood or accepted the terms of the insurance contracts signed.

An explosion of complaints

Faced with the scale of the complaints, several consumers contacted the UFC-Que Choisir association, pushing the Fraud prevention to open an investigation in 2018. This brought to light deceptive practices : customers believed that their termination requests had been processed, while the direct debits continued. In 2019, a €10 million criminal settlement was reached. However, complaints persisted, with new consumers reporting termination attempts that were never implemented.

Poignant testimonies from victims

Many victims have shared their experiences, often devastating. Martine insured her computer for 5 euros per month. Little by little, the levies multiply under different names.

“I noticed that there were direct debits with different names, I had no idea where it came from. I looked up the creditor’s ID and I realised that it was Sfam, which became Indexia.” Martine lost 3000 euros and after months of complaints, the company offered her 725 euros which she refused.

In February 2023, several dozen customers came in person to the Romans-sur-Isère headquarters to get reimbursed. “They owe me 17,000 euros! I’ve tried everything, I’ve written, called consumer associations, I’ve filed a complaint, but we always come up against a wall.” Another, determined to get compensation for the damage suffered, says: “I was charged 175 times, 175 times, can you believe it? The total of all that comes to 4,600 euros, which they owe me!”

Last June, France 3 Rhône-Alpes anonymously collected the testimony of several former employees who agreed to explain the group’s methods. “We had training to sell an offer. We had a script, we had to ask customers to write an email, but we knew that it was not processed.”

Another remembers the complaints on the other end of the line: “quadruple samples, people in distress, we try to understand and the boss tells us that nothing is happening… We tell ourselves that he lied to us.” Between regrets and guilt, some recognize that they had exceptional conditions for the area of ​​activity where they found themselves.

“I was earning between 2,000 and 3,000 euros net bonus some months, on top of my salary of 3,000 euros, can you imagine? That’s what leads to turning a blind eye to certain practices. We were kept with the money and the benefits.”

I wasn’t the one who pushed the button to take all those people, but my guilt is still strong. We were following orders, but we should have woken up earlier, I realize that now, I apologize.

The fall of Indexia and its legal consequences

Last May, the Indexia holding company and several of its entities were placed in receivership, following the bankruptcy of SFAM, the group’s parent company. Despite this liquidation, legal actions continue, both criminal and civil. Many clients have also filed civil actions to try to recover the sums unduly collected, and this trial could mark a turning point in this complex legal battle.