Cash Genie goes into liquidation and urges customers to claim compensation
Payday lender Cash Genie Goes Into Liquidation and is attempting to trace 12,000 borrowers who are still due redress with average settlement around £175 per individual.
The Financial Conduct Authority is advocating borrowers who’ve not heard from Cash Genie to contact them and claim their compensation.
Borrowers who took out loans from payday lender Cash Genie have already been urged to come forward to claim compensation after the business went into liquidation.
The firm, which offered short term loans at a yearly rate of interest of 2,986%, was hit with a £20m compensation bill in July 2015 after it admitted to the financial regulator that it had engaged in unfair lending practices.
More than 92,000 customers were due to be compensated for what the Financial Conduct Authority (FCA) described as “serious failings”, including charging £50 fees to refer customers to its sister debt collection firm, rolling over loans without their permission and using bank details given to other businesses in the group to recover money.
On Tuesday, Cash Genie, which is registered under Ariste Holding Limited, went into solvent liquidation and the liquidator, RSM, is attempting to trace 12,000 customers who are still due reparation, worth a combined £1.5m.
Steven Law, partner at RSM and among the liquidators, said: “In this situation Cash Genie has voluntarily entered into a solvent liquidation, meaning there’s enough capital left in the business to redress all affected customers”.
“We happen to be working closely with Cash Genie and its own sister company, and therefore are eager to seek out and pay those remaining customers.”
The Financial Conduct Authority said borrowers who had not heard from Cash Genie but considered they were due compensation should contact the business as soon as possible.
Information from the Guardian website.