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.
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