Ariste Holding Limited, trading as Cash Genie, has entered into an agreement with the Financial Conduct Authority (FCA) to provide over £20 million of redress to more than 92,000 customers for unfair practices.

http://www.fca.org.uk/news/cash-genie-redress-unfair-practices

The payday lender, Cash Genie, has been ordered to pay £20m to people they’ve ripped off. The lender was told by the Financial Conduct Authority (FCA) to dole out the money to more than 92,000 customers.

Turns out that they’re been ripping off customers in a number of ways, with Cash Genie charging fees which they were not entitled to, according to customer contracts. In some cases, they charged people who weren’t able to repay their loans £50 to transfer them to their own debt collection firm, Twyford Developments.

Basically, they were taking money needlessly from people who were already struggling with debt.

It transpires that Cash Genie were also rolling over and refinancing loans without customers’ consent, which of course, all means that people in financial hardship were being hit with extra interest and additional costs.

Cash Genie also traded as the online brands txtmecash and paydayiseveryday, with customers advised to go to these websites on the promise of a fresh loan. Then, when customers went to these sites, they were used to harvest banking information so they could take payments from existing loans without permission.

So, Cash Genie will reimburse some people and write-off the debts of others.

Linda Woodall of the FCA said: “We expect all firms to notify us of any unacceptable past or current practices and provide appropriate redress to anyone affected.”

What Do I Do Next If I Was A Cash Genie Customer?

For the time being, if you’ve been swindled by Cash Genie, you don’t need to do anything. Cash Genie is going to contact affected customers by 18th September.

There’s more info over at the Cash Genie website, if you think you’ve been affected. The FCA also have some information as well.

For the time being, sit tight and wait for Cash Genie to get in touch with you. Do not appoint a claims management company to sort this out either, as they’ll charge you for a service that you won’t need.

If you feel that it is important to talk to someone, you can contact the Cash Genie Customer Service team on 0333 366 0023, or email them at [email protected] or by letter at Cash Genie, 2 Reavell Place, Ipswich, Suffolk IP2 0ET.

If you’d prefer, you can get in touch with the FCA by calling 0800 111 6768 or 0300 500 8082, or email them at [email protected].

http://www.bitterwallet.com/cash-genie-to-pay-20m-for-ripping-off-borrowers/86917

I'm surprised with the £20m figure it seems very high for a small company like this. I think Wonga which is much bigger made £80m profit in its best year.

According the competition commission readings (I'm not allowed to post links) Cash Genie made £1m profit in 2012 so this redress scheme must have pretty much wiped all their profits since their existence in 2009?

hatepdl's, is this the link you were wanting to pop up ?

https://assets.digital.cabinet-office.gov.uk/media/5368ed1540f0b60fe2000001/Summary_of_a_hearing_with_Ariste_Holding.pdf

No it wasn't that one but it was on a similar heading. This one was a summary of all the top 10 or so payday lenders and told you the revenues and profits for some of them.

anybody know why they would 'voluntarily notified the FCA that it had engaged in unfair practices'

and why the FCA didn't know?

or were there loads of complaints that the FCA was not, or at least had not yet actioned?

Update

Jesus Wept :

Interest charged at a higher rate than what was stated in customer contracts, which was equal to 30% of the outstanding balance per month,

I'm surprised with the £20m figure it seems very high for a small company like this. I think Wonga which is much bigger made £80m profit in its best year.

 

According the competition commission readings (I'm not allowed to post links) Cash Genie made £1m profit in 2012 so this redress scheme must have pretty much wiped all their profits since their existence in 2009?

It's not difficult [or unlawful] to move profits offshore, purchasing services, leasing equipment or engaging in credit control with group child companies is generally a good earner.

Does that mean that any defaults registered by them should be removed.

Nice little list of confessions in the letters they are sending out:

http://i57.tinypic.com/ju8rif.jpg

http://i61.tinypic.com/rwrsk5.jpg

http://i57.tinypic.com/eim5qg.jpg

http://i57.tinypic.com/ivbad5.jpg

http://i62.tinypic.com/23uybk4.jpg

Cash Genie have sent 2 e mails saying I am due a redress of 472.88 and 108.71 both have been for not providing statements no mention of the fact that they kept rolling over my loans. Thankfully I have not had any dealings with them for nearly 2 years now.

I'm only getting the template letter at the moment.

Although on the phone they have told me I am due for redress, but not the amount.

Also they said that no electronic payments will be made until after 10th August.

I have received my redress today

They refused me as my last PDL loan EVER was back in 2011 - so it is off to the FOS/FCA I go - they did this behaviour way way before 2013 so why can't they go back to 2011 - still within the Statute of Limitations period.

They refused me as my last PDL loan EVER was back in 2011 - so it is off to the FOS/FCA I go - they did this behaviour way way before 2013 so why can't they go back to 2011 - still within the Statute of Limitations period.

Good luck

i was offered under £10 redress, so i complained, and ended up getting back near £130... im a happy camper. i had paid near £360 on my loan!

i was offered under £10 redress, so i complained, and ended up getting back near £130... im a happy camper. i had paid near £360 on my loan!

Hey - I have just been offered £12. What did you say to get them to pay you more?

Thanks

I got extra as I complained that CG treated me unfairly by refusing to accept a small amount which was offered by PayPlan.

I received a letter yesterday informing me that a cheque had been sent to a previous address and to confirm my details with the company. The letter was dated 17th September. I tried using the telephone number which is currently "not in service", their website is down and my email was returned as not delivered. . Just about to email FCA.

**Update** just contacted FCA. It appears CG have been sending out letters with incorrect contact details which the FCA "are aware of". Anyone trying to contact CG should use 0333 366 0023.