SafetyNet Refund Claims

SafetyNet Refund Claims

SafetyNet is a new way of obtaining credit by providing “flexible credit that is easy to manage and minimises costs.” SafetyNet can automatically top up your account when you are about to go into your overdraft (and therefore overdrawn). Instead of becoming overdrawn, SafetyNet automatically puts money into your account to make sure you don’t go into the red, therefore being a “Safety Net”. A great idea, however did SafetyNet do all the right checks or have SafetyNet Credit been irresponsible lending?

The repayment of the credit starts when any new money comes into your bank account, and this is automatically taken from the bank accounts of SafetyNet users.

Whilst SafetyNet’s offering is unusual in how it works, there have been reports of customers becoming “stuck in a cycle of debt” after borrowing from the lender and using their unique borrowing arrangement. Customers have complained about SafetyNet taking payments out from accounts as soon as vital funds went in. There have also been complaints about SafetyNet’s claims and a call for clearer explanation and transparency about it’s interest rates, especially in terms of how that compares to the overdraft provided by banks (read the information here).

What type of loans do Safety Net offer?
– High-Cost Loan
– Revolving line of Credit

Safety Net Eligibility Requirements:
Minimum age of 18, with a “regular source of income”, a UK address and a UK current bank account.

Safety Net Costs:
Interest is charged at 0.8% each day, with the interest capped at 40 days. As an example, to borrow £100 for two days would cost £1.60. The most you will ever pay in interest is £32 per £100 borrowered.

However, the representative APR is 68.7% APR.

Safety Net is registered at the following address: SafetyNet is a trading name of Indigo Michael Ltd, 10 Brick Street, Mayfair, London, W1J 7HQ.

Why could I receive a SafetyNet Loan Refund?

• When you applied for the loan, you may have not stated your correct regular income, due to be self-employed or your job history changing during this time. SafetyNet should have looked at this and ensured you had a regular, consistent income before giving you a loan.
• During your application process, you may have not mentioned all of your debts. If this didn’t match with your credit record, SafetyNet should have ensured to double check this.
• You may have underestimated your monthly outgoings when you took out the loan, due to estimations or eagerness to be eligible for your loan due to the circumstances you were in, causing you not to be able to afford the monthly repayments. If your monthly outgoings were too low, SafetyNet should have explored whether these were correct or not.

Did you sign up for the automatic borrowing but found that you were unable to pay back the loan? You could be eligible to claim compensation if the correct due diligence checks were not made. Start your claim, by just clicking on the button below, or get in touch with the experienced Reclaim Experts team who will guide you through the process. We are here to help.