The FCA has published details of a redress scheme agreed with payday lender Cash Genie valued at £20 million, to more than 92,000 customers for unfair practices.
Following an independent review of past business Cash Genie has agreed to provide £10 million in redress. The firm had already voluntarily written off £10.3m of fees and interest.
The review identified serious failings, some of which dated back to the launch of Cash Genie in September 2009 and included:
- Charging fees and interest which were unfair; and
- Rolling over or refinancing loans without customers’ explicit request or consent and without undertaking appropriate checks or assessments of customers’ situations.
Cash Genie stopped offering new loans to customers in September 2014. Its parent firm, US-based EZCORP, announced on 6 October 2014 that Cash Genie would exit the UK payday lending market in 2015 as part of its new business strategy.