The payday lender admitted to exploiting customers by not checking their financial health before acceptance and rolling over their loans without consent.
The FCA (Financial Conduct Authority) also found that the fees and interest levels customers had to pay were unfairly high.
These unfair costs included a £50 charge to transfer debt from Cash Genie to its sister debt company, even though it didn’t cost the firm anything to do so.
Customers who had given their information to other payday lenders in the same group had their new loan used to take payment for their existing Cash Genie loans without any consent.
According to the FCA, some customers were encouraged to apply for loans on sister websites, giving their bank details over under the false pretence that a pre-approval of the loan had already been given.
The payday firm also failed to send annual statements to its customers who had not repaid their loans after 12 months. This means that the firm should not have applied further interest or fees to accounts.
Ariste Holding Limited, the company that is trading as Cash Genie, voluntarily wrote off £10.3 million of interest in fees, and has also entered an agreement to prove £10 million in redress.
Acting director of supervision, retail and authorisations at the FCA, Linda Woodall, 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. We expect all firms to notify us of any unacceptable past or current practices and provide appropriate redress to anyone affected.”