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Do you think you may be entitled to compensation from Cash Genie?

Posted 07 January 2016

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Cash Genie has gone into ‘solvent liquidation’, do they owe you any money? If they do, get your skates on if you want to claim.

Have you had a loan from Cash Genie, or one of its sister websites www.txtmecash.co.uk or www.paydayiseveryday.co.uk, in the past seven years? If you have, you could be in for a compensation payout. The cash-strapped short-term loan provider was ordered by the Financial Conduct Authority to pay compensation to its customers after it admitted to unfair lending practices in July 2015. These included charging people £50 for a referral to its sister company, rolling over loans without their customers’ consent and using bank details given to sister companies to reclaim monies on the loans also without the customers’ consent. A full statement about the unfair practices they indulged in is available on the Cash Genie website. This has been going on since 2009 and resulted in Cash Genie being hit with a compensation bill of £20m.   

 

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How will the compensation be paid? 

The compensation will be given either as a reduction on the balance outstanding for current customers or a refund cheque for those with closed accounts. Some people may receive both a reduction in balance and a cash payout. If you’ve already received a compensation cheque from Cash Genie it’s still okay to cash it. In fact, we’d advise that you do so as soon as possible. The company appointed to oversee the liquidation process, RSM, says there’s enough money to cover the compensation payouts needed, but things can always change.  

What should you do if you think you may be due compensation? 

Cash Genie has been contacting people since last year, but they are still trying to locate about 12,000 customers.  So, if you’ve had a loan, but you’ve not heard anything from them yet, get in touch as soon as possible. This is what it says on their website:

Cash Genie have made every effort to contact all affected customers, however if you have changed your email address, home address or telephone number since your last contact with Cash Genie, then you need to let us know. You can do this by phone on 0333 366 0023* or by email at [email protected]

Once an offer of compensation has been made, you do have to contact Cash Genie to accept it.  

How much compensation might I be entitled to? 

There is a set process in place to compensate customers, which is detailed on their website. However, the average payout will be around £175. 

If you want more details about Cash Genie’s compensation scheme, here’s a link to a statement published on the Financial Conduct Authority’s (FCA) website: Information for Cash Genie customers about its redress scheme.  

 

by Christine Walsh

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