Friday 9 April 2021 8:35 am

Buy2Let Cars parent company under investigation by serious fraud watchdog

The Serious Fraud Office (SFO) has launched an investigation this morning into the Buy2Let Cars parent company Raedex Consortium for an unauthorised customer investment scheme.

The SFO, the National Crime Agency (NCA) and the City of London police searched two premises in connection to the scheme and arrested one person yesterday.

The person was interviewed and has since been released, pending further investigation. Another person has also been interviewed but not arrested.

Raedex Consortium, which also owns PayGo Cars, Wheels4Sure and Rent2Own Cars, set up a customer investment scheme that was not approved by the Financial Conduct Authority (FCA).

In March, the FCA confirmed that Raedex was part of an investment scheme where customers invested in car leases through its car rental companies.

The FCA stopped Raedex from entering into any new car leases in February while allowing existing lease agreements to continue.

The investigation is ongoing and its progress will be updated on 10 May.