Safety Net Credit Rejected My Complaint

[acid53]

anyone else lodged irresponsible lending complaints against these guys? i have completed all my cases against other payday lenders and these are the final lot. interesting they are arguing they do not fall into the hcstc definition and operate like a credit card accout lol!!

[fkofilee]

Are we talking about their current product or when they were clearaccount? Technically they arent a "PDL" Company, but IMHO do fall under the HCSTC environment.

Do you have their full response?

[fkofilee]

Christ... What are they talking about?

 

Important information

 

By borrowing from SafetyNet Credit you are taking on a financial commitment. You should consider whether you can afford to take out credit and make the necessary repayments.

 

Failure to make payments or missed payments could have a negative impact on your credit history and adversely affect your ability to gain credit (including mortgages).

 

SafetyNet Credit’s service requires us to have read only access to your internet banking. You need to disclose your online banking log-in details to be considered for a facility. If you are given a facility we review your balance and transactions on a daily basis and monitor any changes in your financial status.

 

Borrowing from SafetyNet Credit or through an unauthorised overdraft or any other form of high cost short term credit involves risks if you are unable to repay.

 

Deffo HCSTC criteria to me... But remember they also adjusted their product to the HCSTC ruleset and regulation... If there wasnt an issue with their product, why did they change it?

 

Acid, have a read here...

 

https://www.fca.org.uk/static/documents/policy-statements/ps14-16.pdf

 

Its long but page 48 should be good , Type of HCSTC option 4

[FootballPlayer]

Hi

I have been through with these guys last week. I raised a dispute for irresponsible lending. As a 'goodwill gesture' another word for accepting the fault, they wrote my balance off and marked the loan as settled on my credit file.

[FootballPlayer]

And they operate as an overdraft providing facility really. They call it overdraft providing facility but actually its very much like a payday loan

[renegadeimp]

Saw this a while ago. You need to get the FCA involved asap.

 

SafetyNet Credit’s service requires us to have read only access to your internet banking. You need to disclose your online banking log-in details to be considered for a facility. If you are given a facility we review your balance and transactions on a daily basis and monitor any changes in your financial status.

[fkofilee]

Saw this a while ago. You need to get the FCA involved asap.

 

Hi Imp... Indigo Michael Ltd have a IP license which the FCA thoroughly investigates the product that is offered. I dont think the FCA will action upon this, bare in mind that what IM Ltd do, is probably much better than most PDL comps.

But If the OP wants to report it then no harm in doing so.

[acid53]

thanks guys - the read-only access to my banking is what I think they will hang themselves on, as those transactions showed I had a multitude of other payday lenders so really it is wilful ignorance and no hiding place for them.

 

footballplayer - yes, I noticed your post last week - seems to be very little about them in terms of complaints versus other payday lenders thus far but I was heartened to read your goodwill gesture, my complaint is currently with an adjudicator so should get a decision in next two weeks

 

fkofilee - my lending stretched across both their "old" ClearAccount product and "new" SafetyNet product - continuous lending for almost two years despite having a mulitude of other lenders. I think they have been quite crafty in trying to differentiate themselves from other payday lenders despite being a payday lender in all but name! Their final response stated:

 

SafetyNet Credit is a running account credit product with a monthly minimum repayment

and no fixed repayment date. In many ways SafetyNet Credit is akin to a bolt on synthetic

overdraft, saving the vast majority of customers significant sums compared to what they

would be charged for equivalent borrowing on an unauthorised overdraft, but the

contractual minimum monthly repayment structure is similar to that for a credit card.

 

SafetyNet Credit was never previously treated as a payday loan by our former regulator the

Office of Fair Trading and falls outside the Financial Conduct Authority’s High Cost Short

Term Credit (“HCSTC”) definition.

 

 

My thoughts are if they are not HCSTC then why did they have to reduce their daily interest rate on 1st April 2015 to 0.8% and why the warning messages on their website!

[renegadeimp]

Hi fko. Are you sure because they're demanding access to the bank. They ask for the online log in details and everyone knows there's no such thing as read only. They can use credit checks like everyone else

[fkofilee]

Hi fko. Are you sure because they're demanding access to the bank. They ask for the online log in details and everyone knows there's no such thing as read only. They can use credit checks like everyone else

 

Yes because they can see a live view of your expenditure so they can gauge the risk to the business better etc (Amount of credit lent etc)

 

The whole point of this is that they are a HCSTC based company.... and they cannot use what they sent you to fob them off.

 

The product they offer is;

 

Running account credit

 

The borrower may draw-down credit

up usually to an agreed credit limit

and make repayments of a specified

minimum amount.

 

Repayments are

taken into account and borrowers may

make drawdowns to that limit

.

Cumulative borrowing over the course of

the loan may exceed the credit limit.

 

Initial cost cap is calculated on the actual

amount of principal outstanding on the day.

 

The total cost cap is calculated on the lower of:

 

– the credit limit

– the amount the lender actually advances.

 

Calculating the total cost cap in this

way does not allow the lender to

take account of any borrowing which

in aggregate, over the duration of

the agreement taking into account

repayments, exceeds the credit limit

 

 

SNC are exactly the definition of the above... Interest at 0.8% per day.

They dont charge any default fees but they allow you to borrow money on a manual basis similar to a QQ Flexloan etc... They cant just brush you off like this and it makes me angry that they are covering themselves in smoke and mirrors!

[fkofilee]

Page 48.... This is the WHOLE document from the FCA on the matter. And their decisions are marked in Dark Gray.

 

 

ps14-16.pdf