By Jonathan Davies

Payday lender Cash Genie is to pay a total of £20 million in compensation to nearly 100,000 customers.

Cash Genie, which launched in 2009, charged customers £50 to transfer their account to its debt collection business.

The Financial Conduct Authority, which regulates the UK's financial services industries, said it was one of a number of "unfair" fees and interest rates used by the lender.

Cash Genie has agreed to pay compensation to 92,000 of its customers. Former customers will be given a cash refund, while existing customers will have their debt reduced.

The payday loans firm was also found to have rolled loans over into another term despite not receiving any requests or consent from customers.

"Although standards in the consumer credit sector are improving, it is disappointing that examples of poor practice in the payday market keep surfacing," said Linda Woodall, of the FCA.

"We expect all firms to notify us of any unacceptable past or current practices and provide appropriate redress to anyone affected."

In 2014, Cash Genie said it would leave the payday loans market sometime in 2015.