UPDATE – in March 2024 the administrators announced they are no longer collecting any payments for the remaining loan balances. Also any more affordability complaints must made in the next few weeks. See SafetyNet & Tappily loans are written off for details.
Indigo Michael Limited (IML) went into administration on 9 January 2023. It had two lending brands – SafetyNet Credit (SNC) and the much smaller Tappily. In this article, I just talk about SNC but this all applies to Tappily too.
I’ll start with the background – how SNC lending worked; why they have been losing so many cases at the Financial Ombudsman (FOS); and the recent restrictions that the Financial Conduct Authority (FCA), SNC’s regulator, has imposed.
Then I’ll look at what normally happens in a payday lender administration and whether SNC’s may be different.
Contents
How SafetyNet Credit lending worked
“Rolling credit” and the payday loan trap
SNC gave borrowers a credit limit, a bit like a credit card. This is called “rolling credit”. If you have a limit of £500, withdraw £400 then repay it, you can immediately take out up to £500 again.
Where SNC is totally unlike a credit card is that they choose the repayment they will take from your bank account, after checking how much is in your account using Open Banking.
Although there was a minimum payment set, SNC frequently took much more. It said this was to minimise the interest someone paid. Often this left the borrower with so little money that they had to borrow again from SNC. That is the classic payday loan trap.
SafetyNet Credit’s quoted APR was misleading
SafetyNet Credit’s website said:
interest is charged at 0.8% per day only on any amounts you borrow, capped at 40 days. No extra costs, no hidden charges.
Now 0.8% per day interest rate is the maximum rate payday lenders can legally charge. And they quote APRs of 900% or more… But SNC quoted a representative rate of only 68.7% APR.
It seems that in calculating that APR, SNC assumed that the borrowing is repaid within 40 days and that no more was borrowed. But that wasn’t what happened and it isn’t the way a rolling credit facility is expected to work.
The true cost
In this FOS case, Mr P borrowed £37,000 and repaid £41,000 over a period of three years. SNC told the Ombudsman this was cheap borrowing. But as the Ombudsman said:
I think it’s somewhat misleading to use a figure of £37,000 in any interest comparison as Mr P never had access to £37,000 from SNC. He only ever had access to a maximum of £800.
The Ombudsman’s conclusion was:
SNC collecting Mr P’s payments in the way that it did meant that Mr P paid a high amount of interest for access to a relatively small amount of funds… in reality the amount of interest paid in proportion to the funds Mr P had available is very similar to interest payable on a high-cost short-term credit product [the regulator’s term for a payday loan].
Debt Hacker estimated the true interest rate in Mr P’s case at 942%. Just like a payday lender.
Why SNC has failed
The administrators will give their summary in a few weeks, but at the moment SNC seems to have had three interlinked problems.
1) Losing a lot of affordability complaints
Affordability complaints against SNC were some of the easiest complaints to win:
- SNC could see what was in your bank account so it should have known you were in difficulty;
- repeat borrowing most months suggests that you are not using the facility for a one-off need, but have become dependent on it.
Many cases were settled directly by SNC when people complained. And 75% of the complaints sent to FOS were won in the first half of 2022.
To stem this tide, SNC tried to make it hard for a customer to use a claims management company. FOS dismissed SNC’s excuses for rejecting or ignoring CMC complaints, with the following wording being used in several cases:
I’m not persuaded there is any reason why the Financial Ombudsman can’t consider this complaint. It is disappointing that SNC has taken the stance that it has in relation to this particular jurisdiction issue considering that, in my view, it is patently incorrect and is therefore simply delaying the resolution of this complaint.
2) Restrictions from the FCA
In July 2022, the FCA brought in restrictions on Indigo Michael (IML) affecting the amount it took as repayments and its attempts to halt CMC complaints. After some immediate changes it restarted lending but by mid-September it stopped lending to new borrowers.
In late 2022 new FCA restrictions were imposed. These include:
IML must not use a CPA to take repayments from any existing customers where IML has reason to believe there are insufficient funds in the account, or that taking payment would leave insufficient funds for priority debts or other essential living expenses, leading to the customer borrowing further from IML or another firm, or entering their overdraft facility to meet such expenses.
Before taking on new customers or offering credit limit increases to existing customers, IML must, when conducting its creditworthiness assessment assume that repayment of the full capital balance plus interest will be collected, without the customer having to borrow to meet repayments.
3) A funding problem
IML’s last published accounts showed a debt of £50 million to its parent company, Account Technologies Ltd, that didn’t have to be repaid until at least January 2023.
With the additional FCA restrictions the business may no longer be profitable. And increasing numbers of complaints have been made after the FCA stopped SNC rejecting claims company cases – there must be several thousand claims outstanding now at SNC or with FOS.
If the parent company doesn’t see a future for IML and now wants its loan back, that may have dictated the timing of the administration.
What normally happens in a lender administration
I’ve written quite a few of these “payday lender fails” articles over the last few years – and Safetynet Credit was effectively a payday lender. Most have followed a similar pattern:
- lending stops;
- administrators halt any refunds which are in the process of being paid – customers owed refunds have become unsecured creditors and it won’t be known for some time how much cash there will be to pay out, if any;
- existing complaints are put on hold. New complaints arriving are put on hold. FOS returns outstanding cases to the administrators to settle – FOS has to do this in an administration, it doesn’t legally have a choice. . The administrators develop a means of deciding whether to uphold complaints or not;
- unsecured creditors are only paid a percentage of any cash refund and that after a year or more. This has varied from 50%+ to nothing.
- people with a complaint and an outstanding loan will first get a reduction / write off of the balance. This happens in full, then if there is any remaining refund to be paid in cash, they are paid a percentage of that;
- outstanding loans after any balance reductions are usually sold to a debt collector.
What will happen in the SNC administration
Some lending continues… for 5 months
Unlike most lender administrations, the FCA has agreed to the administrators carrying on some lending:
- there won’t be any loans to new customers;
- no loans to customers who have a current balance but haven’t borrowed from it in the last 30 days;
- a customer who has borrowed in the last 30 days can borrow again but has had their credit limit reduced to the amount they borrowed;
- SNC has emailed affected customers telling them what their credit limit has been reduced to and warning that credit limits are likely to be reduced further in the future.
The Statement of Administrator’s Proposal published on 10 March 2023 say that lending is being wound down over a period of five months.
There may be no money for cash refunds
This is because repaying the very large secured loan takes priority over paying unsecured creditors, which includes customers owed refunds.
The administrators initially warned that “there is very little prospect of recoveries for unsecured creditors“.
This means they do not expect to pay any cash refunds. This includes cases where a refund has already been offered by SNC or agreed via the Ombudsman as well as any new complaints that are made.
The Statement of Administrator’s Proposal says the only money available for cash refunds would be small and the amount may be less than the cost of assessing the claims.
What should previous customers do?
Update – it is now expected that customers with upheld complaints may get a small pay out, see SafetyNet & Tappily loans are written off for details
If you have already made a complaint, then there is likely to be nothing you can do to progress it. If your complaint is already with FOS, they have put up a notice saying what will happen – basically FOS won’t be taking any new complaints and will be returning existing complaints to the administrators.
What should you do if you currently have a loan from SNC?
Update – these loans are now being written off. See SafetyNet & Tappily loans are written off for details
Another regulatory failure
Before the administration Sky News said that SNC may be about to fail, describing it as the latest victim of an FCA clampdown on high-cost credit providers.
But it seems to me that the customers are the real victims here. They have suffered from SNC’s lending practices and they have also been let down by the FCA’s failure to supervise SNC effectively:
- the FCA allowed the misleading APR to carry on being advertised;
- it allowed a firm who was losing a large number of complaints to carry on without considering a redress exercise;
- SNC was allowed to trade with a level of capital that was inadequate to settle complaints.
Can’t pay your bills & debts?
Card or catalogue limit too high?
Can you get an overdraft refund?
Ryan Mcgarry says
Any update on this fiasco ,will there be a fund for unsecured creditors who won redress prior to administration but not yet paid out
Sara (Debt Camel) says
All unsecured creditors will be treated equally. People who had redress assessed prior to administration will not get paid first. I understand why this feels unfair but the administrators have no choice about this.
The Statement of Administrators Proposal (find it here https://find-and-update.company-information.service.gov.uk/company/07721420/filing-history) says the only money available for unsecured creditors will be “the prescribed part”,. 7.12 says that the costs of assessing claims may be so large it outweighs the money available… so there may be no cash refunds at all.
Michael says
Hi I’ve received a final response from SNC saying they believe all credit checks were fair etc and have rejected my complaint (even though was in a dmp and was stated on my claim that I was in one, they got added later too) shall I still forward this to the FOS?
Sara (Debt Camel) says
No, FOS won’t take the complaint as they are in administration, as the article above explains
simon says
hello, quick update on my complaint. they have decided to wipe my balances which is good. shame i just paid them £100 minimum balance on friday but still.
I had an account with Tappily and this has come from Safetnet so hopefully the rest of you’s who owe money get the same result
Complaint Overview and Outcome
We understand your complaint relates to the creditworthiness assessment on
your revolving credit with us, from the initial lend/during your use of the facility.
As we are upholding your complaint, the value of your claim has been calculated
according to the total of all interest to date on the credit you have borrowed,
plus 8% statutory interest. This comes to £660.46, which is broken down as
follows:
Interest repaid: £565.09
Statutory 8% interest: £26.98
Notional HMRC 20% deduction: (£5.40)
Amount awarded: £660.46
Balance outstanding on your account: £329.65
All entries under SafetyNet will be removed from your credit file when we next
report to the Credit Reference Agencies. This can take up to 12 weeks to show
on your credit file.
simon says
Position as a result of Administration
Unfortunately, as a result of the Administration, the Company is no longer able
to make settlement payments of amounts awarded, which will now rank as
unsecured creditor claims against the Company.
At present the Joint Administrators are not able to confirm whether a dividend
(i.e. any cash) will be available to unsecured creditors in this case, however it
appears to be highly unlikely.
Action required by you
As there is a balance remaining on your account, you have the right to request
that we reduce your outstanding balance by the amount of the compensation
award shown above.
If you wish to reduce your outstanding balance, please click on the following link:
john says
Hi Simon, can you please advise of the specific nature and/or wording of your complaint? My own has been unsuccessful, so far.
Michelle says
That’s good they are wiping your balances.
I complained back at the beginning of Jan, and they still haven’t resolved my complained. They emailed a couple of times to say it is taking longer than expected.
Did your compliant take this long?
Thanks
Jackie says
Got this from Tappily. What do I do? Loan taken a year ago. I havent made any payments since September. Can they persue me for the balance? Do I ask them to reduce the balance as per the award or do I just ignore it?
As we are upholding your complaint, the value of your claim has been calculated according to the total of all interest to date on the credit you have borrowed, plus 8% statutory interest. This comes to £499.86, which is broken down as follows:
All entries under Tappily will be removed from your credit file when we next report to the Credit Reference Agencies. This can take up to 12 weeks to show on your credit file.
Position as a result of Administration
Unfortunately, as a result of the Administration, the Company is no longer able to make settlement payments of amounts awarded, which will now rank as unsecured creditor claims against the Company.
At present the Joint Administrators are not able to confirm whether a dividend (i.e. any cash) will be available to unsecured creditors in this case, however it appears to be
Action required by you
As there is a balance remaining on your account, you have the right to request that we reduce your outstanding balance by the amount of the compensation award shown above.
Sara (Debt Camel) says
What is your current balance?
Lucy says
Hi, I received a reply from my complaint and this was their answer:-
“Please note that on 9 January 2023, J O’Connor, C Kennedy and S Appell of AlixPartners were appointed Joint Administrators of Indigo Michael Limited (trading as SafetyNet) in Administration (the Company). Further information can be found by visiting the SafetyNet website: safetynet.credit
Unfortunately, we will not be investigating this complaint, as it is now time barred.
What this means is that we are acting in accordance with the FCA guidelines and under DISP 2.8.2, that states that we shouldn’t consider a complaint if it has been submitted to us more than six years after the event you are complaining about has happened or three years from the date in which you ought to have been aware that there was cause for complaint.
Also, within your Credit Agreement which had to be read and understood before opening your account, Section 8 it informs you on how to make a complaint.
Based on this, we consider that this complaint is time barred, as your account was opened on 14/12/2016 and we are rejecting it on that basis.
This is now our final response to your complaint.”
What should i do? I suffer with mental health and this is impacting me now.
All help is appreciated
Sara (Debt Camel) says
do you still owe a balance? has SNC increased your credit limit at any time in the last 6 yeears?
Lucy says
Yes, i still have an outstanding balance of £658.28 with them. They have increased it over the years but I think the maximum I got was £450.
I’m at my wits end. My mental health has taken a hit
Sara (Debt Camel) says
Then I suggest you go back and say that they need to consider if the increases in the credit record were affordable, not just whether the original credit limit when the account opened is affordable.
You may find this difficult to win – you could talk to your local Citizens Advice and se if they could write letters on your behalf. They could also help you look at your full debt situation and see what your options are.
ellie says
saftey net credit won’t pay me my awarded balance a considerable amount as they are in administration now so I’m at a loss I don’t owe them anything and my account was closed by myself as I didn’t want to continue borrowing after i finally paid them off completely 😤
Sara (Debt Camel) says
You are now an unsecured creditor as they owe you money. At the moment it appears there is no money to pay unsecured creditors in the administration – I am sorry but there is nothing you can do about this.
John says
Following the recent rejection of my complaint and emailed threats my Tappily to take more “automatic payments” as it suits them I replied stating that 1) I will follow up with a more robust, detailed complaint and 2) As the account is suspended and they are no longer providing services they should not take any more “automatic” payments. Their two seperate responses are incredible 1) “Please note that the complaint has been fully investigated on your account and no further investigations will be carried out.” and 2) reiterating that they may apply for automatic repayments to collect the funds. The first response is a mistake/bluff, I think, as it makes no mention of new complaints and ignores the right to complain to the FCA. The second also, as I can ask my bank to block any payments to them and even when accounts were normal and functioning, permission could be witheld.
Sara (Debt Camel) says
The FCA does not look at customer complaints. Do you mean the ombudsman? I am afraid that route is blicked as Tappily is in administration.
If you cannot afford to make the repayments I suggest you cancel the CPA with your bank. And offer a lower affordable amount.
Rhi says
Any idea who I can contact to repay the debt I have with these?
I’m trying to improve my credit rating but it’s stuck on there and I don’t know who to contact to repay the debt for this to be removed.
Sara (Debt Camel) says
was this defaulted a while ago? how long?
Shaun says
I have an amount owed to safety net of £330 and haven’t paid anything back since October 2019 but my account has stayed open and just been in arrears since then (they have added charges which brought the debt to 330).
It’s showing on my credit report as a credit card. How should I handle this? I haven’t had any contact with them since I missed the payment back in 2019 and am trying to get my credit score back in good standing.
Sara (Debt Camel) says
If you repay the amount, it will then be shown as settled. The missed payment will conti ue to harm your credit score for 6 years after the settlement date.
Or you could consider making an affordability complaint – see the article above. If you win that all negative marks will be removed.
Or as this one seems to have slipped through the net, you could consider doing nothing and hope you are never contacted about it. There will be a point late in the administration where the administrators will no longer talk to the credit reference agencies – at that point you can contact the credit reference agencies and ask for the debt to be “suppressed” as it is incorrect as a default should have been added back in 2019. It is too soon to do this now – this point is unlikely to be for at least 9 months, possibly a lot longer. I have no idea how likely this is to work.
'John' says
Some interesting updates from Tappily (or their administrators) have refused my second and latest complaint as they claim:
“Customer’s are only entitled to 1 affordability complaint as there is no interest charged after and they are not allowed to reborrow also.”
My first (rejected) complaint was about affordability, my second was not! I have advised them as much, but it should have been obvious. Surely they can’t limit people to only making one type of a certain complaint?
They have also sent the debts on to a DCA. The remarkably small (cheap?) CRS. Who have already offered 25% of the balances. I appreciate they probably only paid, at best, 40% or so for the debts but offering that discount so quickly suggests they know Indigo Michael (AKA Tappily/SafetyNet) are one weak ground given their mis-selling and bad behaviour.
Sara (Debt Camel) says
What was the second complaint about?
'John' says
Mis-selling of the loan. As the site debthacker has written about at length, they advertise a false APR and ‘interest free period’ due to how the loans work: you end up using the ‘facility’ every month so you never use the potential ‘interest free period’ and are actually paying a far higher APR and, by design, are stuck in a loop of using and repaying the facility. Also, the fact the loan requires minimum repayments every 30 days is another reason ‘interest free after 40 days’ is nonsense. More here https://debthacker.co.uk/evidence-of-massive-harm.
Sara (Debt Camel) says
Well I don’t disagree with that, it’s spot on, but in practice I have never seen anyone win a complaint saying that at the Ombudsman.
And to a lender or an administrator, affordability and irresponsible lending and mix-selling are usually seen as different words for the same underlying complaint.
Sam says
Hiya,
Been waiting for a response to a complaint I sent to SafetyNet 11 weeks ago now. They emailed me on the 8th week saying they’re still investigating. I guess there is nothing I can do but wait?
I initially sent a complaint to them in 2021 for unaffordable lending, it was referred to the FOS but wasn’t looked at in time before they went into administration. I followed this up with safetynet and after I said all I want is the adverse credit data to be removed, they said they would re investigate and get back to me within 8 weeks.
They calculated my income totally incorrect, was double than what I actually earned due to them counting bank transfers as income. Sent them my bank statements proving all of this. If their calculations were correct I would’ve been in the minus. Haven’t got much hope but fingers crossed!
Sara (Debt Camel) says
There is no way to speed this up that I know of.
Kelly says
This is what I received Friday – so what happens to the rest they owe me?
We are contacting you further to our previous correspondence where it was confirmed that your complaint had been upheld and the sum of £4460.92 awarded.
As previously advised, as a result of the Administration, the Company is no longer able to make settlement payments of amounts awarded, which will now rank as unsecured creditor claims against the Company.
However as there is a balance of £1275.49 remaining on your account, you have the right to request that we reduce your outstanding balance by £1275.49. The remaining £3185.43 of the awarded amount would rank as unsecured creditor claim against the Company.
You were previously invited to click on a link to confirm that you wished to reduce your outstanding balance, however it appears that you have not yet done this.
Sara (Debt Camel) says
Probably you will get nothing for the rest of it.
This won’t improve by you delaying accepting them clearing your current balance. No-one is going to think, oh Kelly is being difficult, we had better pay her… there either is money to be distributed, in which case you will get a bit, or there isn’t (which is more likely) and no-one will get any cash refund.
Getting your balance cleared should be your top priority.
Kelly says
I’ve already done so the balance owed been written off ☺️
karen says
Safety net have sent me a email asking me to set a payment plan up what should I do?
Sara (Debt Camel) says
What happened to your complaint?
What re the rest of your finances like at the moment – other problem debts? Behind on any bills?
karen wood says
Safetynet declined my complaint a while ago and got other debt they say I owe £638 and to start a payment plan…
Sara (Debt Camel) says
ok so tell me about the other debts. Safetynet is not normally someone’s only problem debt. It makes a lot of difference if the other debts are a few hundred, a few thousand with payment arrangements in place or a lot more with no payment arrangements in place.
karen wood says
I only want to know if its better to set some sort of payment plan up because I do not agree with the decision for the complaint I made?
Sara (Debt Camel) says
yes but the point is, can you afford to pay anything? I suggest you talk to National Debtline on 0808 808 4000 about this. This SNC debt isn’t having interest added any more.
John Doe says
I’m ‘John’ from previous comments. Tappily have emailed me, advising they aim to finally respond to my complaint by July 25th. This will be 8 weeks after the complaint was made. In the meantime I’ve been spammed by their Debt Collection Agency, CRS, who claim in correspondence that I’ve ignored all contact. When I replied, reminding them I’ve told them several times I have an ongoing complaint, they sent another generic reply saying they’ve paused action for 30 days.
Jane Doe says
I owe safety net £465 and i’ve received both email and text from Safety Net saying if i pay £212 by the end of the month the rest of my debt will be written off. Paying this would stretch me a little bit so I’m wondering if this is worth doing, i’m currently in a payment agreement with them. I’m just a bit worried if my debt is sold to debt collectors as I can’t just clear the balance.
Sara (Debt Camel) says
How much of a stretch? It isn’t worth doing this if you would have to borrow more money – this debt is now not having any interest deed, new debt would.
If you could manage £120 say you could offer that in full and final settlement of the debts. Get them to agree this in writing. I don’t know if they are likely to agree to this but worth a try?
If the debt is sold to a debt collector, your payment arrangement will just continue with them..you don’t have to replay it immediately.
Joe Blogg says
Update today from the administrators 6 monthly review, looks like there is going to be funds to pay unsecured creditors to the grand sum of… Drumroll please…. 3p in the £.
I know something is better than nothing, but still from being told I was owed £4k in December to now standing to get £120ish is a bit of a sickener. Hope this info helps others too.
Sara (Debt Camel) says
Do you have a link to this report?
Joe bloggs says
It needs login credentials to view and contains my own personal information so not something I’d be willing to supply a link to sorry. Is there a way to send a screenshot perhaps?
Sara (Debt Camel) says
where do you login?
Becky says
The link is
https://www.ips-docs.com
But you will need the log in details they sent after the administrators were appointed
J says
I recently made an affordability complaint to SNC which hasn’t been upheld. An administrator sent me a breakdown showing why they thought the loan was affordable. Their reasoning was flawed and the figures used did not accurately reflect my financial situation at the time. They have not provided a way for me to escalate this complaint such as referral to FOS. They insist I direct my complaint to Lantern who now holds the debt. Lantern will not investigate since they did not provide the loan. Getting conflicting info from the FCA, FOS and FSCS. Could anyone advise the next steps to escalate this complaint?
Sara (Debt Camel) says
– when was the debt sold to lantern?
– is there still a current balance with lantern?
– what are the rest of your finances like at the moment?
– you can cross the FSCS off your list – they have nothing to do with this situation
– it isn’t possible to take a complaint about either SNC or the administrators to FOS.
– the FCA is still the regulator in theory for SNC but it does not regulate Insolvency Practitioners.
I think you should first try to get the administrators to relook at this. Email sappell@alixpartners.com joconnor@alixpartners.com and ckennedy@alixpartners.com with the word COMPLAINT as the subject and explain in detail why the reasoning is flawed. Ask for you case to be reviewed.
I don’t have much faith this will work, but it will help to have a clear response from them if you later want to make a complaint to Lantern
It has sometimes (but not commonly) been possible to get a debt collector to agree to remove interest from an outstanding debt in this sort of situation. Also a complaint to Lantern may be possible under the new Consumer Duty that came into force yesterday…
But all this is a way in the future. For now, go back to the administrators and try to get them to at least acknowledge that the debt was unaffordable even if there is no money to distribute.
– it would be possible to take a complaint about Lantern to FOS, and although a complaint could be made, it seems best to but it isn’t at the moment clear what that complaint would be.
J says
Thanks for this info was very helpful.
Not sure when the balance was passed over due to self destructing emails but earliest correspondence i can find from lantern is from nov 2020.
Finances haven’t been great due to cost of living. Have a few debts managed by Stepchange most are in default and in collections.
When I received the response from SNC I sent an email to explain why I thought it was wrong but didn’t hear back. Will try the administrators emails you provided.
I also tried to raise a complaint with lantern but they are refusing to investigate.
You mentioned a consumer duty that came into effect, could you provide more info on this?
Cheers
Sara (Debt Camel) says
“could you provide more info on this?”
Not until you have a categoric rejection from the administrators, not just a brush off.
Complaining to Lantern is not certain to work and it will rely on you being unable to pursue a normal route through the administrators.
In the meanwhile it may be a good idea to get the Lantern debt included in your DMP.
Niall says
I owe safety net £422 and was receiving monthly statements from then, my credit file now shows it as a settled debt, I have logged onto my account and it’s shown 21.7.23 admin – debt written off -complaint. I did complain but that was about 6 years ago and they rejected my complaint in full. have you heard if they are writing debt off ? Thanks
Sara (Debt Camel) says
I hadn’t heard but it is possible.
Niall says
Okay thank you
Niall says
Just had an email from them confirming debt has been written off
Scott says
I owe safety net £610, I could hardly remember this and thought it was long settled as never heard a thing. That was until a few weeks ago, when lantern uk called me, requesting I settle this with them.
I opened and checked my credit file with Equifax and this was opened with safety net in August 2017, defaulted in March 2018 and is also marked as settled / satisfied in October 2021. I have no paper trail or anything. It was also linked to my old bank account which has long been closed.
I raised a complaint with lantern, who have just now sent me another request for payment arrangemtns (which lead me here.) Also odly, according to my credit file, lantern opened this the same time as safety net.. August 2017 and defaulted March 2018.
The only thing that I can prove is at the time of the loan, I was in and out of work and unable to hold down a secure job. I was also in recept of universal credit at the time because I was living / renting alone. Would this be worth rasing an affordability complaint? I know for a fact that at the time I was in receipt of UC benifits. I can just say remember one time they took a payment leaving me with next to nothing and I had to borrow in order to pay rent.
Hope you can help, thanks.
Sara (Debt Camel) says
do you remember how many months you borrowed from them?
Scott says
I’m not sure but believe it would have only been a few months 2-4.
Sara (Debt Camel) says
Did you think that you had actually settled the balance? Do you know roughly when you last heard from them?
I think you should try urgently to get your bank statements for the 6 months before August 2017 – this may be possible from a closed account.
Emily jane says
I have a question so I had a debt with safetynet we put in a redress complaint and 3 days later they sold my debt to lantern who now want £270 off me where the original loan was £200 ish now I have been given some money for the redress a value of £115 which they sent to the debt company which is fine but now the debt company are still chasing me for the balance, I would of thought that this debt may of been wiped now by the debt company on the grounds that it has been proven it has been missold me to but they say I still have to pay the balance is there anything I can do or do I have to pay the balance
Sara (Debt Camel) says
did you just have one loan from them? or were you borrowing for many months?
Evelyn says
Hi
I still have outstanding balance and about to pay bit I cant log in anymore to the apps.Whats gonna happen now to the money I owed?Sept 22,2023
Sara (Debt Camel) says
Are you in a payment arrangement or are you making the normal repayments?
Mar says
Hi, owe them money and I would like to pay it. What should I do?
Roly says
Hi, not sure if anyone here can help me, but we thought we’d closed our accounts with SafetyNetCredit years ago, but this morning got notifications from ClearScore that our credit scores will soon show that they have raised our credit limits. Not surprisingly am a bit surprised by this. Has anyone else experienced anything similar? What do you think is best to do about it? Thanks
Sara (Debt Camel) says
Bizarre. Does your credit record show a balance?
Roly says
Hi apologies for late response, has been a bit busy here. No, neither of us had an outstanding balance, and they’ve been showing as closed for years now
Amber says
Hi, did you get this resolved? It just happened to me this morning. I had an account with them years ago, I just logged into it now and it says it’s closed. But clear score just notified me my limit is increasing to 7K from October. They are not even listed on my creditors on the report but the account doesn’t exist. 7K is crazy too because I only borrowed a couple hundred at most and I have a poor credit score.
Amber says
Sorry I asked if you got it resolved and you only posted this morning same as me – still half asleep!
S Lou says
The EXACT same thing has just happened to me!!! Opened a safety new account years ago and closed it the same year! Had a notification this morning of an increase for £11,000!!!!! I can’t log in either! Credit score has decreased by 400 because of this!
Mariann says
Same for me! My account closed in 2019 and my limit was £500. Today clearscore sent an email that my limit updated to £13,200. Never applied or even considered that amount.
Sara (Debt Camel) says
Wow that is an astonishing limi!
I suggest you ask SNC what is happening. It sounds like they have messed something up.
Roly says
Yes, mine is for a similar amount. Husband’s is more reasonable (which makes no sense as his limit with them was higher originally!)
Amber Gavin says
I found this reddit thread, lots of people saying it’s happened to them. Someone emailed the administrators and they’ve said they are aware of the issue and working to correct is asap.
https://www.reddit.com/r/UKPersonalFinance/comments/16v56ej/michael_indigotappily_appeared_on_credit_report/
Mariann says
Correcr,
I wrote to them this morning and and this is the reply I got this afternoon:
Good Afternoon
We are aware of an issue with credit file reporting and we are working with the bureau to correct this as soon as possible.
Kind Regards
Roly says
That’s useful. Thanks. In a way am reassured it wasn’t just is, but it is a major cock-up on their part.
Roly says
Limits seems to have gone back to where they were, which is a relief, but still a bit wierd, especially given the accounts were closed so long ago.
Rob says
I have just had mine say my credit limit was £23,500 ! I have no clue where this came from and I am hoping it isn’t impacting me negatively
Mariann says
Hi Sara, wile I am still waiting for Amigo, I received my SafetyNet claim outcome letter.
“As we are partially upholding your complaint, the value of your claim has been
calculated according to the total of all interest paid since 21/09/2017 on the
credit you have borrowed, plus 8% statutory interest. This comes to £194.26,
which is broken down as follows:
Interest repaid: £144.81
Statutory 8% interest: £61.81
Notional HMRC 20% deduction: (£12.36)
Amount awarded: £194.26
Any adverse markers from 21/09/2017 in relation to this SafetyNet account will
be removed from your credit file when next reporting to the Credit Reference
Agencies. This can take up to 12 weeks to show on your credit file.
Details will be provided to you within the next 14 days of how to submit an unsecured claim against the Company for the amount awarded as set out above
on the Administrators’ portal. No further action is required from you in the
meantime.
”
So I can submit another claim to get the redress?
Sara (Debt Camel) says
does that sound likely? that you only paid £194 in interest?
Mariann says
Yes since I entered into DMP the interest was frozen and they only calculated from that point.
“Having investigated your complaint fully and taking into account all the
information gathered and that you have presented, whilst credit appears affordable, we also noted through our investigation that there was a change in
your circumstances during your lending journey with the Company and we will be
partially upholding your complaint.
We can see that there was a change in your circumstances and feel that the
continued lending offered from 21/09/2017 onwards may not have been in your
best interests.”
At least they clear my credit file which is another bonus.
Sara (Debt Camel) says
So do you still owe a balance in the DMP?
Mariann says
No, this loan was paid off in 2019.
Sara (Debt Camel) says
ok then you wiill have to submit that claim. But you may only get back a small percentage of that £194.
Laura says
Hello
I wonder if you can advise, last week I was award £868.11 for my complaint, I had an outstanding balance of £226.03. I didn’t see the email until today as it was in my junk. Yesterday they still took £100 payment, should they have done this after awarding an amount?
Also is there any chance of any money compensation from this? The email suggests not but didn’t know if anyone else had more information.
Thank you
Sara (Debt Camel) says
No they should not. Ask them to refund it.
If there is any money to refund it may not be a lot v
Laura says
Thank you, I have emailed them and will dispute it with my bank. Thank you.
Aneleh says
Keep getting emails from lantern. Do I contact them saying sftynet is in administration and how unaffordable the loan was ? I don’t understand why they are still contacting me, can the company still sell the debt after sfty net went into administration? Also how is everyone getting a response from sfty net with redress amounts I’ve got nothing from them yet
Sara (Debt Camel) says
You have made a claim to Safetynet? How long ago?
don’t understand why they are still contacting me, can the company still sell the debt after sfty net went into administration?
yes they can. the debt still legally exists.
Tell Lantern you have made a claim to Safetynet.
What are the rest of your finances like – most people with Safetynet debts also have other problem debts. You may be able to get more back by making complaints about your other debts.
Marie says
Hi, I had no idea that Safetynet had gone into administration. I have a direct debit of £46 being paid to Indigo Michael every month. This morning I have had an email from Safetynet to say I have missed 2 payments’, which I haven’t, which is how I stumbled upon this page. Any idea where my payments have been going? Why they say I have missed payments when I haven’t? And am I entitled to a refund of all these £46’s? I can’t get through to them on any phone number.
Sara (Debt Camel) says
Are you currently in a payment arrangement with them? what is the remaining balance?
Marie says
Yes I am in a payment arrangement. I haven’t a clue what I owe as their phone lines are closed and they direct you to CRS.
I have emailed and rang them but they now say I have missed just 1 payment, which I haven’t . They won’t give me my account number and my credit file shows I have missed a payment which I haven’t. I have now cancelled my standing order as I don’t want any more payments going missed. My bank say the payment was sent but they haven’t collected it as the account is closed. Why should I be having a black mark on my credit file for no fault of my own. I have been paying every month :(
Sara (Debt Camel) says
if you have been in a payment arrangement, that should have already been marked on your credit record.
I think you should tell the administrators you also want to make an affordability complaint – that could get the remaining balance lowered or cleared. See the article above for more information.
Marie says
Thanks. I had already done that with Safety Net Credit. Am I able to do it again?
My complaint was unsuccessful as they said it was affordable.
Sara (Debt Camel) says
It’s a shame you didn’t send it to the Ombudsman where huge numbers of complaints against SNC were won. Yes you can again complain to the administrators.
John Doe says
Is there some disadvantage to complaining to Ombuds. now or was there a time limit, or are you simply saying it’s better to complain when numerous others are. Surely the Ombudsman will remember? My complaint to admin was also rejected.
Sara (Debt Camel) says
The ombudsman cannot legally take a case where the lender is in administration.
RM says
Just received the quarterly update on the administration process today, and it looks as if after secured and preferential creditors will be paid there’s actually going to be a tiny pot of money for us folks who have been left short changed by Indigo Michael’s mess, something I guess.
Mariann says
Hi Sara,
This is the message I received today from Alix
Thank you for submitting your claim. This email is confirmation that the details as above have been entered in our system but this does not constitute an admission of the claim for dividend purposes.
I am an unsecured creditor and safety net provided a link to register with this company. Do you know what this message means exactly for unsecured creditors?
Sara (Debt Camel) says
It means they have got your claim but haven’t decided if it is valid
Aneleh says
After submitting a redress claim safety net sent a letter saying accept the claim and that they have calculated a redress for me however since they sold the debt to lanterns information on the redress will be sent to lantern not me . Is this legally correct?
Again I a contracted lantern and they say said they know nothing of this and that no one had been in contact with them about the redress . It’s been 4 months now since they sent correspondence to the administrators and no response just wondering is this common and will I get to a resolution or is there something I should do ? I have the letter and email from safety net’s administrators with all this confirmed just don’t understand why it is taking 100+ days . Any help would be greatly appreciated
Sara (Debt Camel) says
are you making any payments to Lantern? How large is your balance remaining?
Aneleh says
I am not making any payments to lantern and the balance is about £1000 . They have told me that they have put my account on hold and are waiting for a response from safety net. It’s just if they have calculated a redress and it’s written they will contact lantern who will then contact me , but come to find out they never contacted lantern and if I didn’t let lantern know they still would be chasing me for payment. At this point I don’t know the amount of the redress it could be more or it could be less but why sent me a letter with information if it’s not even completed.
Sara (Debt Camel) says
I suggest you send a complaint to the administrators, email joconnor@alixpartners.com, ckennedy@alixpartners.com and sappell@alixpartners.com. Say LKantern says they have no knowledge of it and you have a right to be informed of the detail of the decision
John Doe says
New email last night saying all Collections activity will cease on April 9th (complaints will end on April 15th), no further payments will be taken and anyone with an outstanding balance will have their credit file marked as “partially settled”.
I take it they will still sell the ‘debt’ to some crooked DCA like Perch for a tony fraction of the balances? Would be happy to not pay my £1300 balance in return for only having a Partially Settled marker.
The administrators rejected my (well-founded imo) complaint already anyway.
Sara (Debt Camel) says
No they are NOT selling these loans where you have had this message. The loan has been cleared and you have a partially settled marker.
Do you have a default or missed payments on your credit record already for this debt? Because you may be able to get them cleaned.
Sara (Debt Camel) says
See my new article on the loan write offs: https://debtcamel.co.uk/safetynet-tappily-loans-are-written-off/
I have moved a few comments left this morning over to that article.
These are comments are now closed