Payday lender Cash Genie goes into liquidation - compensation available
12,000 customers of failed payday lender Cash Genie are still to claim compensation worth on average around £175.
Cash Genie went into voluntary liquidation on Tuesday after the Financial Conduct Authority (FCA) hit it with a £20 million compensation bill in July 2015 for engaging in unfair lending practices.
The liquidator RSM Restructuring Advisory said there is enough capital left in the business to redress all affected customers, with £1.5m owed in total. RSM said that average redress to customers, made up of cash payments and loan write-downs, has so far been around £175.
Over 92,000 customers in total were owed compensation due to what the FCA highlighted as ‘serious failings’, including:
- Charging £50 to transfer customers to its sister debt collection firm;
- rolling over or refinancing loans without customers’ consent;
- using customers’ bank details, provided to other businesses under the holding group’s umbrella, to take loan payments without consent; and
- failing to send annual statements to customers who had not repaid their loans after 12 months.
Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said: “Few will mourn the liquidation of this rogue payday lender, which the FCA rightly took action against in July after uncovering deeply unfair treatment of customers in financial difficulty. It is crucial that anyone who has taken a loan from Cash Genie claim the compensation they may be due.”
What if I’m owed compensation?
A phone line and email address has been set up to help those who believe they are due redress. These are:
- 0333 366 0023