[UPDATE: In January 2016, Cash Genie went into liquidation. According to the Financial Conduct Authority (FCA), the liquidation won’t affect the payment of refunds mentioned in this article.]
Payday loans company Ariste Holding Limited, which trades as Cash Genie, has agreed to pay out over £20 million to more than 92,000 of its customers.
The announcement comes a year after Cash Genie voluntarily told the Financial Conduct Authority (FCA), the body which regulates them, that they had treated customers unfairly.
Linda Woodall from the FCA said: “We have been encouraged that Cash Genie has been working with us proactively and openly to put things right for its customers after these issues were reported.
“Although standards in the consumer credit sector are improving, it is disappointing that examples of poor practice in the payday market keep surfacing.”
Francis McGee, Director of External Affairs at StepChange Debt Charity, said: “It has been well established that unfair practices were widespread in the payday loan industry. Today’s news that tens of thousands who were on the receiving end of unscrupulous behaviour will be compensated is extremely welcome.”
So what actually happened?…