Thu, 07 Jan 2016 | ADMINISTRATION
A payday lender, that offered short-term loans at a yearly interest rate of 2,986 per cent, has put itself into a solvent liquidation, after having been ordered by the Financial Conduct Industry to pay out £20 million in customer redress six months previously.
Cash Genie, which had admitted its unfair dealings, came to an arrangement with FCA to pay out redress to 92,000 customers in July 2015, who had been victim to a "number of serious failings" dating back to when the short-term loan provider started in 2009.
The liquidation is being managed by RSM Restructuring Advisory. The situation won't stop further payments of redress, and any customers owing money to Cash Genie are still expected to pay up.
The FCA uncovered several failings in its original investigation into the company, these included unfair fees, £50 charges to move customers over to its sister debt collection business, despite no additional costs being involved.
Money Advice Trust chief executive Joanna Elson OBE 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."
RSM is still attempting to track down 12,000 borrowers who are still due redress, and are owed an average compensation of about £175 each.
Find distressed business listings
This is a reputable and constantly growing company, receiving a significant amount of revenue through both new and existing customers and is ready for large scale expansion. Products are colourful, vibrant and playful and are created using only the f...
LEASEHOLD
Specialises in turn-key water containment solutions, overseeing pond and lake construction, membrane lining and safe drinking water storage. Operates from a leasehold aquatic nursery able to accommodate over 10,000 m2 of coir products. Offers invited...
Rapidly growing online luggage retail business. Much time, effort and money has been put into the online side of the business, with tens of thousands going into search engine optimisation and Adwords. This is now paying off as the business is a top s...
LEASEHOLD
|
20
|
|
Nov
|
Customer reviews specialist Feefo completes MBO | MBO/MBI
A company that provides a platform for customer reviews and ...
|
18
|
|
Nov
|
Kent childcare group sold to national charity | BUSINESS SALE
A Kent childcare group has been acquired by a chain of day n...
|
17
|
|
Nov
|
Warm Zones enters administration | ADMINISTRATION
A North Shields-based non-profit business dedicated to helpi...
Sign up to receive our acquisition alert emails to get your FREE guide
|
15
|
|
Nov
|
Administrators called in for online bike retailer | ADMINISTRATION
A company that sells bikes and cycling gear online has enter...
|
21
|
|
Jun
|
Flour mill bought in a pre-pack administration | ADMINISTRATION
C Marston & Sons (Icklingham) Limited, a Suffolk-based strug...
|
09
|
|
Jul
|
Lincolnshire metal fabricator goes in administration | ADMINISTRATION
SST Process Engineering, a metal fabricator business based i...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources