Car leasing investment company Raedex Consortium Ltd (FRN 668924), trading as Wheels4Sure and Rent2Own Cars, has been declared in default by the Financial Services Compensation Scheme.

The default declaration by the FSCS opens the door to ex-clients with valid claims to seek compensation for losses from the FSCS of up to £85,000 per claim.

The move means the firm is unable to pay claims itself.

The FSCS said this week it had so far received 236 claims against Raedex Consortium Ltd relating to investment advice. The firm was declared in default on 30 April when the first claim was upheld.

Raedex Consortium also traded under the names Buy2Let Cars and PayGo Cars.

According to the FCA Register the firm had been authorised since January 2016. Companies House record show that the firm was incorporated in February 2012.

The only FCA listed regulated individual at the company was Reginald Larry-Cole, who was appointed in October 2013 according to Companies House and whose occupation was listed as car salesman.

Raedex ran a number of investment schemes offering consumers the chance to invest in car leases. The 'investments' themselves were loan agreements and not liquid investment in marketable securities, the FCA said.

Customers invested in car leases through Buy 2 Let Cars Ltd and Rent 2 Own Cars Ltd, according to FSCS. Buy 2 Let Cars Ltd is not FCA authorised. However, the cars bought with the money were then leased to customers by Raedex – which is authorised by the FCA.

In February 2021 the FCA imposed a number of restrictions on Raedex and ordered it to halt regulated activities because of concern about its finances.

Raedex appointed RSM UK on 16 March 2021 as administrators of Raedex, Buy 2 Let Cars Ltd and Rent 2 Own Cars Ltd.

In April 2021 the Serious Fraud Office launched an investigation into suspected fraud by the firm.