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High-cost credit firms SafetyNet and Tappily fall into administration – what it means for you

High-cost credit firms SafetyNet and Tappily fall into administration – what it means for you

Credit providers SafetyNet and Tappily have collapsed into administration and stopped taking on new customers – but there's no immediate change for existing borrowers. Both former and existing customers can still submit mis-selling complaints, though there's no guarantee you'll get anything back. 

The firms, which are both owned by parent company Indigo Michael Limited and have a combined 150,000 customers, offered short-term loans of up to £1,000 at interest rates of up to 68.7% APR.

Here's what you need to know.

If you have an outstanding balance, you should keep repaying it as normal

If you have an outstanding balance with SafetyNet or Tappily, the administrator, AlixPartners, says you must carry on paying it back in the usual way.

Your loan will continue to accrue interest until it's repaid (up to SafetyNet's cap of 40 days' interest or Tappily's cap of 75 days' interest), and you'll continue to be bound by the same terms and conditions you agreed to when you first signed up.

If you're struggling to repay your loan, you should contact the firms' customer services teams at:

Don't take out further loans to make your repayments to SafetyNet or Tappily. If you're struggling and unsure what to do, you can contact the National Debtline charity for free on 0808 808 4000 (phone lines are open Monday-Friday 9am-8pm and Saturday 9.30am-1pm). Also see our Debt problems guide.

Think your loan was unaffordable or possibly mis-sold? You can still make a complaint – but payouts are unlikely

Complaints against SafetyNet and Tappily were among those most likely to be upheld by the independent Financial Ombudsman Service. In the first half of 2022, the Ombudsman upheld 75% of complaints against the two firms (compared to just 37% on average across all types of financial firm).

If you're an existing customer and think your loan was unaffordable or may have been mis-sold, you can still raise a complaint by writing to SafetyNet or Tappily directly at: customer.services@safetynetmail.co.uk or customer.services@tappilymail.co.uk.

However, be aware that you're unlikely to get any cash back as a result of your complaint – the administrator has warned that "there is very little prospect" of any money being available for refunds or compensation. Debt expert Sara Williams, author of the Debt Camel blog, says the most you can expect if your complaint succeeds is for any outstanding debt you have to be cleared.

See our Reclaim payday loans guide for more information on what counts as mis-selling and how you can submit a complaint for free (SafetyNet and Tappily did not offer payday loans, but all the same info applies).

Already filed a complaint? If you have an outstanding complaint against SafetyNet or Tappily then again, it's unlikely you'll get any cash back – but the administrators say they'll keep customers updated about the outcome of their complaints.

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