Information for Cash Genie customers about its redress scheme – Financial Conduct Aut

**Amethyst** · 6th January 2016, 11:05:AM

Re: Information for Cash Genie customers about its redress scheme – Financial Conduct

Cash Genie Customer Redress Programme

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

We have accepted that we did not always meet appropriate regulatory standards and that this caused detriment for many of our customers.
Four specific issues were assessed to determine whether or not our customers had been treated fairly. The review found that:

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, 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;
Loans were rolled over or refinanced without customers' explicit request or consent and without undertaking appropriate checks or assessments of the customers' situations;
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 have therefore agreed a redress scheme with the FCA. Customers who were affected by any of these issues will either have the amount they owe to Cash Genie reduced, or will receive a cash payment. In some cases, customers will receive both a reduction in the amount they owe and a cash payment.
Customers do not need to take any action.

We will be contacting all affected customers by 18th September 2015. 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 through the Members Area, 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:

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.
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.
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.
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 will reduce 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 will write-off the whole outstanding debt and pay you the difference as a cash payment. Your account will be 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 cash payment for all of the redress that you are due.
If you were affected by issue 3 - the misuse of banking information - and you have an outstanding Cash Genie loan, we will always write-off the whole amount you owe regardless of the amount of redress that you are due. Your account will be closed and you will not need to make any further payments to Cash Genie.
How will I know if I am due redress?

Cash Genie will be contacting all affected customers by email where we hold a current valid email address.. When we don't hold a current email address, then we will contact customers by post. When we are unable to make contact through either of these methods, then we will attempt to contact customers by 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 by 18th September 2015, then you should contact us on 0333 366 0023 *.
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 through the Members Area on our website, by phone on 0333 366 0023* or by email at customerredress@cashgenie.co.uk .
Do I have to contact you to accept the offer?

No, if you are due redress we will contact you to tell you what you are due and how we intend to make payment. If you are happy with that, then you don't need to take any further action - you will receive your redress automatically. However, when we contact you we'll explain how to let us know if you would prefer payment to be made to a different bank account or if you would rather receive a cheque.
How do I know that the redress is genuine?

Our regulator, the Financial Conduct Authority, has published details of the redress scheme 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. If you took out a loan through one of these websites and you are due redress we will contact you to let you know.
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 0333 366 0023* 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 0333 366 0023* 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 (of course, we will refund any payments that are made before your cancellation takes effect and which put your account into credit).
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, we will pay the redress to you directly 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 will be 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 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:

Information for Cash Genie customers about its redress scheme – Financial Conduct Aut

Information for Cash Genie customers about its redress scheme – Financial Conduct Aut

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