Raedex Consortium Ltd, trading as Wheels4Sure, Rent2OwnCars

Latest updates

• 30 Apr, 2025

  Further to our last update dated 7th February 2025 below, we expect to start issuing decisions on individual customer claims starting in May 2025.
  
  Claims will be worked in the order received. Please note we are unable to give an exact timescale for when any individual claim will be processed and a decision issued. 

• 07 Feb, 2025

  Since our last update on 31 May 2024, the Financial Ombudsman Service (FOS) has begun issuing decisions upholding customer complaints under the Contingent Reimbursement Model Code (CRM Code) against banks from which customers transferred funds to invest in Raedex.

  The CRM Code sets out consumer protection standards to help reduce the number of Authorised Push Payment (APP) scams. Many major UK retail banks were signatories to the CRM Code. If a consumer falls victim to an APP scam, they may (subject to eligibility) be entitled to seek reimbursement from the bank they transferred funds from under the CRM Code.

  Following the FOS’s decisions, banks have started paying redress under the CRM Code to customers who invested in the Raedex scheme.

  The action FSCS will now take

  FSCS will continue to accept customer claims submitted to FSCS against Raedex that fall into either of the following categories:

  1. Category A: a customer invested in Raedex (in whole or in part) prior to the CRM Code coming into force in May 2019; and / or
     
     
  2. Category B: a customer invested in Raedex (in whole or in part) using a bank that was not applying the CRM Code at the relevant time.

  
  If a customer has at least 1 investment into the Raedex scheme that qualifies for Category A or B, FSCS intends to consider all the customer’s other investments (subject to eligibility and proof of loss) in the Raedex scheme.

  For customers who do not fall within the above categories, FSCS intends to write to them, redirecting them to their bank or the FOS as applicable.

  The Category A and Category B  approach will apply to all current and future claims unless stated otherwise.

  During April 2025, FSCS will provide a further update should any changes occur to our intended coverage position. By that point, we’ll also provide an update on when FSCS expects to start issuing decisions on Category A and Category B claims. Claims will be worked in the order received. Please note we are unable to give an exact timescale for when any individual claim will be processed, and a decision issued.

  Why is FSCS only processing claims from Category A and Category B customers and redirecting others?

  FSCS can postpone consideration of a claim if another party, such as a live regulated firm, can potentially satisfy customer claims. Customers in Category A and Category B might struggle to obtain redress due to the CRM Code not being applicable when they invested into the Raedex scheme. In contrast, customers who do not fall into Category A and Category B should be able to seek redress from their bank, or the FOS as applicable.  

  Why did FSCS initially accept all customer claims in May 2024?

  When FSCS began receiving claims against Raedex in May 2024, there was considerable uncertainty about whether other sources of redress might be available to customers (e.g., under the CRM code), and the timescales for this. As the position has now become clearer, FSCS is able to decide which claims it is reasonable for us to redirect.

  In what circumstances will a customer who redirects their claims to their bank or the FOS be able to resubmit a claim back to FSCS against Raedex?

  In the event that redirected customers receive only partial compensation from their bank, or their complaint is rejected by the FOS, they may still have a valid claim against Raedex that FSCS could consider. FSCS will explain to customers how and when to come back to us when redirecting them.

  FSCS and FOS will share information on claims submitted to FSCS and complaints submitted to FOS relating to the Raedex scheme.

• 31 May, 2024

  FSCS is now open to claims against Raedex Consortium Ltd (Raedex) involving investments in the Raedex investment scheme that was conducted through Buy 2 Let Cars Ltd.

  Background

  Raedex was incorporated on 15 January 2012. Raedex was part of a group. The other entities in the group were:

  1. Buy 2 Let Cars Ltd (B2L). Buy 2 Let Cars Ltd was not regulated by the FCA. Raedex was the sole shareholder of Buy 2 Let Cars Ltd; and
     
     
  2. Rent to Own Cars Ltd (R2O). Rent 2 Own Cars Ltd was not regulated by the FCA. Raedex was sole shareholder of Rent 2 Own Cars Ltd.
     
     

  There was also PAYGO Cars Ltd (PAYGO Cars). PAYGO Cars Ltd was regulated by the FCA. Mr Reginald Larry-Cole, a joint director of Raedex, was the majority shareholder of PAYGO Cars Ltd.

  In summary, the Raedex investment scheme would work as follows:

  1. B2L would seek loans from investors, which it then passed onto Raedex and R2O via intercompany loans. R2O would then use the loans from the investors to purchase vehicles that were then licensed to Raedex. Raedex would then lease these vehicles out to consumers using the trading name ‘Wheels4Sure’. PAYGO Cars sold second-hand vehicles, believed to be vehicles that had been previously leased to consumers by Raedex; and
     
     
  2. Money paid by those leasing the vehicles would be collected by Raedex with the intention that B2L would repay the investors the money due to satisfy repayment obligations under terms of the loan agreements they had entered into. Depending on when the investors invested, some investors were repaid the sums due under the terms of their loan agreements in full, some only received part payments, and some did not receive any payments.

  
  The outcome of FSCS’s investigation

  In FSCS’s view, the Raedex investment scheme was a Collective Investment Scheme (CIS). Raedex did not hold the required FCA authorisations to operate a CIS. FSCS is satisfied that Raedex may owe some investors a civil liability, however, each claim submitted to FSCS will be assessed on its merits under FSCS’s rules.

  Who can make a claim against Raedex?

  FSCS will accept claims from customers who invested money in the Raedex investment scheme via Raedex itself or B2L. FSCS protection does not cover lending or credit broking, so we are not able to accept claims against Raedex from customers who entered into car lease agreements through Wheels4Sure or those who purchased vehicles from PAYGO Cars, nor does our coverage extend to customers who may have claims against those entities direct.

  The investors in Raedex fell into two categories, retail investors and corporate investors (e.g., limited companies and special-purpose vehicles). Investors must be deemed eligible under our rules to proceed with their claims. Only retail investors are likely to meet the eligibility criteria to proceed with their claim against Raedex.

  FSCS is aware that some investors who invested in the Raedex investment scheme were repaid the sums due under the terms of the loan agreements in full. Investors who were repaid the sums due under the terms of their loan agreements in full are unlikely to be eligible for compensation from FSCS.

  Complaints to the Financial Ombudsman Service

  FSCS is aware that some investors have submitted complaints to the Financial Ombudsman Service (FOS) against financial institutions, including banks, which investors used to invest in the Raedex investment scheme.

  FSCS and the FOS are separate and operationally independent organisations, and the rules governing whether a person is eligible to receive compensation from FSCS are separate to those which apply to the FOS.

  FSCS will consider the claims submitted to it under the rules set for FSCS by the FCA. Further, the complaints submitted to the FOS and the claims submitted to FSCS relate to different entities: the complaints submitted to the FOS are against banks and financial institutions, whereas the claims submitted to FSCS are against Raedex.

  Investors can pursue a complaint to the FOS and a claim to FSCS against Raedex. However, should an investor receive compensation from FSCS for their claim against Raedex, they may be required to pay any further compensation to FSCS that they receive from their bank or financial institution (including as a result of any FOS award) in connection with the Raedex investment scheme.

  This is because once FSCS pays an investor compensation for their claim against Raedex, the investor’s legal rights are transferred to FSCS. This allows FSCS to try and recoup our costs and avoids investors being compensated for the same issue twice.

  FSCS will inform the FOS of compensation paid by FSCS to eligible customers who submit claims to FSCS against Raedex.

  Next steps

  FSCS will consider each claim submitted to it against Raedex involving the Raedex investment scheme under its rules as set for FSCS by the FCA.

  If you think you have a claim against Raedex, please submit your claim via our online portal.

   

• 07 Mar, 2023

  FSCS’ investigation into the failure of Raedex remains ongoing. Our work with the IP (RSM UK Restructuring Advisory LLP) is progressing and they are considering a number of points we have asked for input on, and to help with our investigation.

  This will help FSCS determine whether protected claims exist under our rules, as set for FSCS by FCA, and  for eligible customers. As explained previously, this is a complex investigation due to the various entities involved with the Redex group and therefore, the investigation will take time to conclude.

  We will provide further updates on this page in due course.

  Thank you for your patience while we continue our investigations into the firm.

• 11 Nov, 2022

  The FSCS investigation into the failure of Raedex remains ongoing. We're currently working closely with the insolvency practitioner RSM UK Restructuring Advisory LLP to obtain more documentation. This will help with our investigation into whether customers have valid claims with FSCS.

  Due to the nature of the firm’s operation, this is a complex investigation involving various entities within the Raedex group.

  We will provide further updates on this page in due course.

  Thank you for your patience while we continue our investigations into the firm.

• 22 Jun, 2022

  Our investigation into whether FSCS protection may exist for customers of Raedex is ongoing. We’re still working closely with Raedex’s insolvency practitioner (RSM UK Restructuring Advisory LLP) to investigate whether there are valid claims.

  We will provide further updates in due course.

• 11 Nov, 2021

  On 9 April 2021, the SFO announced that it is investigating suspected fraud in relation to the activities of the Raedex Consortium, including the companies Buy2Let Cars, PayGo Cars, Raedex trading as Wheels4Sure and Rent2Own Cars, in the period 2012 to 2021.  

  The SFO is now asking for investors to fill in a confidential questionnaire by 7 January 2022. The information provided will help the SFO to continue to progress its investigation.  

• 03 Aug, 2021

  We continue to investigate whether there are valid claims against Raedex. To make a determination, we have to look into some complex issues so our investigation may take some time. We will continue to post updates on this page as soon as we have them.

• 15 Mar, 2021

  FSCS is not currently accepting claims against Raedex. 

  Firstly, we need to establish whether there are valid claims against the firm. For this to happen we need to know that Raedex owes a civil liability to customers that would mean that it could be sued in court.