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Payday lender goes into liquidation following customer redress

  • 06/01/2016
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Payday lender goes into liquidation following customer redress
Payday lender Cash Genie has voluntarily entered into a solvent liquidation, following an FCA agreement that required it to pay out more than £20m in redress to customers for unfair practices.

A statement published by the Financial Conduct Authority (FCA) said that the firm handed over to liquidator RSM Restructuring Advisory LLP on 5 January. However, customers in receipt of redress will not be affected.

Serious failings at the firm dating back to September 2009 prompted the City regulator to step in last year to the aid of more than 92,000 customers.

Practices included unfair fees and interest charged to customers, loans rolled over or refinanced without customers’ explicit request or consent and customer banking information used to take payment for existing Cash Genie loans without customers’ informed consent.

In June 2014, Cash Genie voluntarily notified the FCA that it had engaged in unfair practices and subsequently agreed to an independent review of its past business.

The firm has now completed its attempts to call all customers due redress.

The FCA has advised customers that still owe money to Cash Genie to continue making payments to the lender unless they are told to stop doing so by the lender. Those who think they are due redress are advised to contact Cash Genie as soon as possible.

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