Payday lender enters liquidation after £20m redress order

An FCA statement confirmed that Cash Genie has now attempted to contact all customers due redress, and that customers can still cash any redress cheques already received. However the regulator said that customers should continue to make payments unless they are told to stop by Cash Genie.

In June 2014, Cash Genie voluntarily notified the FCA that it had engaged in unfair practices. In July 2014, the firm agreed to an independent review of its past business and to carry out a redress scheme.

An FCA statement said that a "number of serious failings took place which caused detriment for many customers".

The FCA reported that Cash Genie charged fees and interest which were unfair, including charging £50 to transfer customers to its sister debt collection firm, Twyford Developments Ltd, trading as Carter Forbes, even though it incurred no additional costs.

Additionally, loans were rolled over or refinanced without customers’ explicit request or consent and without undertaking appropriate checks or assessments of customers’ situations.