Six months after being ordered to pay a total of £20 million to 92,000 customers, payday loans company Cash Genie has entered solvent liquidation.
The company, registered under Ariste Holding Limited, is urging its customers to claim compensation, with 12,000 borrowers being traced. The average compensation payout is approximately £175 each.
The Financial Conduct Authority (FCA) ordered in July 2015 that Cash Genie compensate its customers after “serious failings”, with the lender admitting that unfair lending practices had taken place.
Examples of these include rolling loans over past the due date without the consent of the borrower, and charging borrowers £50 when they were referred to Cash Genie’s sister debt collection firm.
“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,” said Joanna Elson of the Money Advice Trust.
“It is crucial that anyone who has taken a loan from Cash Genie claim the compensation they may be due. I would strongly encourage former customers to contact the phone line that has been set up as soon as possible.”
If you have borrowed from Cash Genie, but not heard from the company, it is recommended to contact the firm as soon as possible.
