Cash Genie Goes into Liquidation, Urges Customers to Claim Compensation | Payday loans
Borrowers who took out loans from payday lender Cash Genie were asked to come forward to seek compensation after the business went into liquidation.
The company, which offered short-term loans at an annual interest rate of 2,986%, was hit with a £ 20million compensation bill in July 2015 after admitting to the financial regulator that it had engaged in unfair lending practices.
More than 92,000 clients were to be compensated for what the Financial Conduct Authority (FCA) described as ‘serious misconduct’, including charging £ 50 fees to refer people to its sister debt collection company, and renewing claims. loans without their consent and using bank details. given to other companies in the group to recover money.
Cash Genie, which is registered as Ariste Holding Limited, went into solvent liquidation on Tuesday and the liquidator, RSM, is trying to track down 12,000 clients who have yet to be compensated, with a combined value of £ 1.5million.
RSM said the average repair to customers, made up of cash payments and loan write-downs, had so far been around £ 175.
Steven Law, partner at RSM and one of the liquidators, said: “In this case, Cash Genie has voluntarily entered into solvent liquidation, which means that there is enough capital left in the company to turn around all the affected customers. .
“We have worked closely with Cash Genie and its sister company, and are keen to find and pay the remaining customers. “
The FCA said borrowers who have not heard from Cash Genie but believe they need to be compensated should contact the company as soon as possible.
A hotline has been set up to help with complaints – customers who feel they are owed money can call 0333 366 0023 or email [email protected]