FSCS Opens Claims Route After Raedex Consortium Declared in Default
May 6, 2025
Did you invest in Buy2LetCars, Rent2OwnCars?
Investors who put money into schemes operated under the names Buy2LetCars, Rent2OwnCars – may now be able to claim compensation via the Financial Services Compensation Scheme (FSCS).
The FSCS has confirmed that Raedex Consortium Ltd the FCA-authorised company behind these brands, has been declared in default—meaning it cannot meet claims made against it.
This opens the door for eligible investors to potentially seek financial redress, particularly those who cannot claim under the CRM Code through their bank.
Raedex Consortium: The Scheme Behind Buy2LetCars and Rent2OwnCars
Raedex Consortium operated a car leasing investment model through several consumer-facing brands: Buy2LetCars, Rent2OwnCars, PayGoCars, and Wheels4Sure. Investors were promised fixed annual returns—often between 7% and 11%—in exchange for funding vehicles that were then leased to customers with poor credit.
Although Raedex held FCA authorisation, some associated brands, such as Buy2LetCars, were not individually regulated. Following concerns about the company’s financial position, the FCA imposed restrictions in early 2021, and Raedex entered administration shortly afterwards.
Criminal Charges Brought Against Directors
The Serious Fraud Office (SFO) began investigating the scheme in 2021. In January 2024, two directors of the business were charged with multiple counts of fraud. Both deny the charges, and the case is due to go to trial in 2026.
FSCS Compensation – Who May Be Eligible?
The FSCS has now confirmed it is accepting claims relating to Raedex Consortium Ltd. However, compensation is not automatic. Eligibility will depend on the investor’s circumstances—particularly when they invested and which bank was used.
You may be eligible to claim if:
- You invested before May 2019, when the CRM Code was not yet in place; or
- You used a bank that wasn’t a CRM Code signatory at the time of your payment.
If you fall outside these groups—for example, if your bank was a signatory to the CRM Code—you’ll likely need to follow your bank’s complaints process first. If your bank rejects the claim, you may still be able to return to the FSCS.
Note: FSCS protection is available to retail investors in the investment schemes, not to customers who simply leased vehicles through Wheels4Sure or purchased cars via PayGoCars. Corporate investors are generally not eligible for FSCS compensation.
Next Steps for Raedex Consortium Investors
Many people who invested in Buy2LetCars, Rent2OwnCars, or other related brands have been left uncertain about how to recover their money. The FSCS default declaration offers a potential route to compensation—but each case is different, and eligibility needs to be assessed on an individual basis..
You can pursue a claim directly with your bank and, if necessary, refer your case to the Financial Ombudsman Service (FOS) free of charge. You can also make a claim with the FSCS at no cost.
Want some help? Talk to Compensation Adviser
If you’d like professional help managing your claim, Compensation Adviser is an FCA-regulated claims management company (CMC).
We offer a free, no obligation initial consultation to discuss your situation and assess the potential for a claim. There’s absolutely no cost for this initial assessment.
If you choose to go ahead and ask us to represent your claim, our fee is 18% (including VAT) of the total compensation we secure for you. This fee is payable only if your claim is successful – if we don’t win, you don’t pay.
Full terms and conditions, including details of your cancellation rights, will be provided before you decide whether to proceed. You are under no obligation to use our services, and you can pursue your claim directly with the FSCS or the Financial Ombudsman Service (FOS) for free.
Further reading: Raedex Consortium Claims guide Investment Claims – what are they?