Cash Genie is undertaking a redress programme for unfair past business practices. Prior to the liquidation, Cash Genie made every effort to contact all affected customers to enable redress to be paid. For further information, please click here.

Those customers who have not yet claimed the redress due to them need to contact us immediately to ensure that their redress can be paid by the Liquidators.

Cash Genie Customer Redress Programme

Ariste Holding Limited, trading as Cash Genie, agreed with the Financial Conduct Authority (FCA) that it would provide redress to customers who were affected by past unfair practices. Affected customers would either have the amount they owe to Cash Genie reduced or would receive a cash payment. In some cases, customers would receive both a reduction in the amount they owe and a cash payment.

The redress scheme has been overseen by an independent body, known as a Skilled Person, whose appointment was agreed by the FCA.

The shareholders of Ariste Holding Limited appointed Steven Law and Nigel Millar of RSM Restructuring Advisory LLP as Joint Liquidators of the Company on 5 January 2016. The Joint Liquidators will deal with the remaining redress payments and ultimately the closure of the Company.

Unfair business practices

The Company has accepted that it did not always meet appropriate regulatory standards and that this caused detriment for many of its customers.

Four specific issues were assessed to determine whether or not our customers had been treated fairly. The review found that:

  1. Cash Genie charged fees and interest which were unfair. For example, we charged £50 to transfer customers to our sister debt collection firm, Twyford Developments Ltd (also now in liquidation), trading as Carter Forbes, even though we incurred no additional costs. In other cases, we charged fees which we were not entitled to under Cash Genie's consumer contracts;
  2. Loans were rolled over or refinanced without customers' explicit request or consent and without undertaking appropriate checks or assessments of the customers' situations;
  3. Ariste Holding Ltd also traded under the brands www.txtmecash.co.uk and www.paydayiseveryday.co.uk. Banking information, which customers had provided to these websites when they applied for a loan, was used to take payment for existing Cash Genie loans without customers' informed consent. A number of such customers were encouraged to apply to these websites for loans and give their banking details under the false pretence that the loan had been pre-approved; and

    Cash Genie failed to send annual statements to customers who had not repaid their loans after 12 months. This means that we should not subsequently have applied further fees or interest to accounts.

What does this mean for customers?

We are committed to putting things right for any of our customers who have been affected by one or more of these issues, both those who currently have an open account and past customers whose account has now closed.

We agreed a redress scheme with the FCA. Customers who were affected by any of these issues would either have the amount they owe to Cash Genie reduced, or would receive a cash payment. In some cases, customers would receive both a reduction in the amount they owe and a cash payment.

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 customerredress@cashgenie.co.uk.

How will redress be calculated?

Our approach to calculating redress and its application has been independently verified. The basis for each of the four issues is as follows:

  1. Unfair or unauthorised charges

    Cash Genie has agreed to write-off or refund fees and charges which should not have been added to customer accounts:

    1. Any excess charges applied over:
      • one late payment fee of £15
      • four letter fees at £12 per letter
      • one trace fee at £45
    2. Any interest in excess of 30% of the outstanding balance charged per month
    3. The £50 fee for transferring a customer's account to Twyford Developments Ltd, trading as Carter Forbes, our sister debt collection firm
    4. The £30 fee charged when a customer applied for a chargeback through their bank where they believed that Cash Genie had taken an unauthorised payment from their account
    5. All charges on customer accounts which cannot be specifically identified and justified.
  2. Rollovers

    For loan agreements dated from 1 January 2013 to 30 June 2014, the firm will write-off or refund any interest charged over the initial [first month's interest payment] interest plus a further three months' interest, whether this was added as rollover interest or as part of a paydown or a repayment plan.

  3. Misuse of customer bank details

    Cash Genie will refund to customers amounts taken without authorisation and will write-off all outstanding balances on accounts affected by this practice.

  4. Failure to provide annual statements

    Cash Genie will write off or refund interest and charges added to customers' accounts after the point at which we should have provided customers with an annual statement.

    In addition, simple interest based on the Consumer Prices Index has been added for all closed accounts under issues 1, 2 & 4.

How will the redress be paid?

If you have an open account with an outstanding debt to Cash Genie, we have reduced your outstanding balance by the amount of the redress due. No further interest or fees will be added to your account.

If your outstanding debt to Cash Genie is less than the amount you are due under the redress scheme we have written off the whole outstanding debt and will pay you the difference as a cheque payment. Your account has been closed and you will not need to make any further payments to Cash Genie.

If you have already paid off your Cash Genie loan and your account is closed, you will receive a cheque payment for all of the redress that you are due.

If you were affected by issue 3 - the misuse of banking information - and you had an outstanding Cash Genie loan, we will have written off the whole amount you owe regardless of the amount of redress that you are due. Your account has been closed and you do not need to make any further payments to Cash Genie.

How will I know if I am due redress?

Since agreeing the redress programme, Cash Genie has made every effort to contact all affected customers by email, post and telephone.

We aim to have contacted all affected customers by 18th September 2015, within eight weeks of the commencement of the programme on 27th July 2015. If you believe you are affected by any of the issues and may be entitled to redress and have not heard from us, then you should contact us on 0333 366 0023 * immediately.

Have your details changed?

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 customerredress@cashgenie.co.uk .

Do I have to contact you to accept the offer?

Yes, prior to the liquidation Cash Genie have made every effort to contact those customers who are due redress. If you have not been contacted and believe you are due redress you must contact us on 0333 366 0023* to claim the redress due to you. The redress due to you will be paid by cheque, along with other redress payments agreed by the Liquidators. We are pleased to tell you that your payment will now include interest at the rate of 8% pa, calculated from the date of the liquidation, which was 5 January 2016. Due to the liquidation process it is anticipated that the first redress payments will be made within 3 months of the liquidation date.

How do I know that the redress is genuine?

Our regulator, the Financial Conduct Authority, has published details of the redress scheme and the appointment of the Joint Liquidators on its website at www.fca.org.uk/news/cash-genie-customers-refund-debt-write-down.

I took out a loan through the Cash Genie websites www.txtmecash.co.uk or www.paydayiseveryday.co.uk. Am I due redress?

The redress scheme also applies to some customers of www.txtmecash.co.uk and www.paydayiseveryday.co.uk. Cash Genie have made every effort to contact these affected customers however if you took out a loan through one of these websites and believe you are due redress please call 0333 366 0023* to claim the monies due to you.

Do I need to use the services of a Claims Management Company?

You do not need to use the services of a Claims Management Company (CMC), which will typically charge you an upfront fee or take a proportion of the compensation you receive.

Our approach to assessing the impact on your account and the calculation of the compensation due to you has been agreed with our regulator and has also been independently verified.

What do I do if I still owe Cash Genie money?

You remain responsible for repaying an outstanding balance on your account. However, no further fees or interest will be added. We encourage you to contact Cash Genie on 01473 200102* to discuss an affordable repayment plan based on your current circumstances. If you are struggling with your debts there are free debt advice services which can help you. You can find out more at www.moneyadviceservice.org.uk or by calling 0300 500 5000*.

What should I do if I have a payment arrangement in place?

If you have an outstanding balance after this redress please continue with the payment plan you have in place until the balance has been fully repaid. If you would like to amend or discuss your payment plan please contact us on 01473 200102* or by email at customerredress@cashgenie.co.uk.

If the redress has paid your balance in full then you should cancel any standing orders you have set up and please do not make any further payments to Cash Genie.

What should I do if I am in a debt management plan or a formal insolvency solution, such as an Individual Voluntary Arrangement (IVA) or bankruptcy?

If you are due a cash payment, you must contact us to claim the monies owed to you as set out above. If you are in a formal insolvency solution, you should be aware that the redress due to you may fall within the terms of your arrangement and you should contact your insolvency practitioner, trustee, the Official Receiver or Accountant in Bankruptcy as appropriate to your situation to let them know that you have received this redress. If you are an undischarged bankrupt, we will also notify the Official Receiver or Accountant in Bankruptcy that we have made a redress payment to you.

What happens to my credit record?

If you owed money to Cash Genie before this compensation and your account balance has been cleared or reduced, then your credit file has been updated to reflect this.

What is a balance write-down?

A balance write-down means that we have adjusted your open account balance to remove any of the unfair interest or charges, in order to put your account back in the position it would have been had these practices not occurred. The adjusted balance is how much you now owe Cash Genie.

What if I have overpaid Cash Genie?

If you have overpaid Cash Genie and therefore have a credit balance on your account, the monies due to you will be paid as a dividend payment by the Joint Liquidators along with other redress payments agreed by the Liquidators. We are pleased to tell you that your payment will now include interest at the rate of 8% pa, calculated from the date of the liquidation, which was 05 January 2016. Due to the liquidation process it is anticipated that the first redress payments will be made within 3 months of the liquidation date.

Cash Genie made every effort to contact customers with a credit balance and arrange for the repayment of this balance. If you have not heard from us; we have been unable to contact you using the correspondence details last provided by you, and therefore you must contact us on 0333 366 0023* or by email to customerredress@cashgenie.co.uk in order to claim the monies due to you.

What if I have a specific question about how this affects my account??

You can contact the Cash Genie Customer Service team by telephone on 0333 366 0023* via email at: customerredress@cashgenie.co.uk or by letter at the following address Cash Genie, 2 Reavell Place, Ipswich, IP2 0ET.

If I am not happy with the redress, can I complain to the Financial Ombudsman Service?

The amount of redress we have offered in relation to the unfair practices you have been affected by is based on the calculation that we have agreed with the FCA. Please contact us if you think we may have made a mistake in assessing how you were affected by any of the unfair practices or if you wish to complain about another aspect of the redress scheme. A complaint can still be made even if you have already received the redress.

We will consider your complaint and send you a final response. If you do not agree with our response you are entitled to refer your complaint to the Ombudsman. If you want the Ombudsman to consider your complaint, you must send your complaint to them within 6 months of our final response.

The Ombudsman's contact details are:

The Financial Ombudsman Service
Exchange Tower
London
E14 9SR

Telephone: 0300 1239 123.
Email: complaint.info@financial-ombudsman.org.uk

Information regarding the service can be found on the Financial Ombudsman website:
http://www.financial-ombudsman.org.uk/publications/consumer-leaflet.htm

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