Cash Genie And Sister Companies To Be Liquidated
Once a big name in the UK payday loan industry, Cash Genie has now gone into liquidation after a series of errors. The payday loan proveider was found to be charging unfair fees and interest rates as well as tolling over loans without borrower’s consent. On top of this, the company failed to send out annual statements to those still in debt.
However, the companies liquisation does not mean all is lost for its customers. For customers of Cash Genie or its sister companies, there is still compensation that can be claimed if they act quickly. There is a total of £1.5 million of compensation available to customers of Cash Genie, www.txtmecash.co.uk and www.paydayiseveryday.co.uk.
Steven Law, a partner at one of the liquidators, spoke about the news explaining that Cash Genie’s liquidation was voluntary “meaning there is enough capital left in the business to redress all affected customers. We have been working closely with Cash Genie and its sister company and are keen to find and pay those remaining customers.”
To help customers who may have been affected, the company’s liquidators have established a claim assistance line. If you think you could possibly be owed some compensation, get in touch by calling 0333 366 0023 anytime between 9am and 5pm Monday to Friday, or alternatively you can send an email to firstname.lastname@example.org. They are currently looking for 12,000 who are estimated to be owed an average of £175 each.
What Went Wrong
The liquidation and compensation offer from Cash Genie is not a big surprise when you take a closer look at the failings of the company.
Here are just a few of the things they did which lead to the current situation.
- Cash Genie charged its customers a fee of £50 to be transferred to its debt collection firm- which they owned so cost them nothing at all.
- Before a customer had given their consent, or without even seeking consent, loans were rolled over or refinanced.
- Cash Genie and its sister companies were all owned by one company called Ariste Holdings Limited. This company used bank details provided across all of the sites to collect money for repayments of Cash Genie loans without customer’s consent and often without them knowing.
- The three companies also often advertised their loans as being pre-approved when they were not leading customers to hand over personal and bank details under the assumption that their loan was guaranteed.
Joanna Elson who is the Chief Executive of the Money Advice Trust also gave her thoughts on the liquidation. She said “Few will mourn the liquidation of this rogue payday lender” with her justification being that “the FCA rightly took action against (Cash Genie)…uncovering deeply unfair treatment of customers in financial difficulty,” and stressed “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.”
So, if you think you may have been affected, act now and avoid missing out.