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
The company is a well-established specialised contractor offering commercial decoration services across Central Scotland, known for its strong relationships with Tier 1 construction organisations and preferred contractor status. With a diverse projec...
This market-leading business specialises in bespoke, luxury kitchens and whole-house furniture, with expertise in handmade designs using responsibly sourced local hardwoods. Catering to high net-worth individuals, the company boasts a strong team and...
A well-established travel company with over 14 years of experience, it specialises in weekend breaks, five-day adventures, and summer holidays across the UK and Europe, offering the convenience of a door-to-door pick-up service. The business benefits...
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.