Payday lender Cash Genie folds after agreeing £20m redress deal with the Financial Conduct Authority
Payday lender Cash Genie has collapsed into administration, just six months after it agreed to a £20m redress package for unfair practises with Britain's financial watchdog.
The administration is being handled by liquidator RSM Restructuring Advisory LLP. However, with around £1.5m of funds remaining unclaimed, RSM is working to trace customers who are yet to redress their payments.
Steven Law, partner at RSM and one of the liquidators, said: "In this case Cash Genie has voluntarily entered into a solvent liquidation, meaning there is enough capital left in the business to redress all affected customers. We have been working closely with Cash Genie and its sister company and are keen to find and pay those remaining customers."
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In July, Cash Genie reached an agreement with the Financial Conduct Authority (FCA) to provide £20m of redress to more than 92,000 customers for unfair practices.
It followed an investigation, launched by the regulation after being voluntarily informed by Cash Genie about its practises, found several failings dating back to 2009.
That included loans being refinanced or rolled over without the permission of customers or checks of their financial situations; customer payments being taken by Cash Genie after they applied for loans from other payday loan brands run by the same company, Ariste Holding; and failing to send yearly statements to customers, meaning it should not have applied further fees or interest on the loans.
The FCA declined to comment.