Liquidators for payday lender Cash Genie (Ariste Holding Limited) are appealing for former customers who may be entitled to a payout as a result of the company’s unfair practices to come forward.
In 2014 Cash Genie voluntarily notified the Financial Conduct Authority (FCA) that it had engaged in unfair practices* and agreed to an independent review of its past business. Prior to engaging with the FCA, the company wrote off more than £10.3 million in charges and interest.
While 76 percent of the monies owed have already been paid out to customers, around £1.5m of funds remain unclaimed. As Cash Genie and its sister company Twyford Developments Ltd (which traded as Carter Forbes) have now gone into liquidation, the official liquidators from RSM, which has offices throughout the UK, including in Edinburgh, are working to trace the remaining customers who have not yet come forward for their redress payments.
Steven Law, partner at RSM and one of the liquidators said: “In this case Cash Genie has voluntarily entered into a solvent liquidation, 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.’
The redress package agreed with the FCA consists of a combination of cash refunds and balance write-downs. Cash Genie has agreed to:
write off or refund fees and charges which should not have been added to customer accounts;
write off or refund rollover interest where the firm rolled over customers’ loans inappropriately;
refund payments taken without authorisation. In addition, the firm has agreed to write off all outstanding balances on accounts affected by this practice; and
write off or refund interest and fees added to customers’ accounts after the point at which the firm should have provided customers with an annual statement.”