On 9th January 2023 Joseph O’Connor, Simon Appell and Clare Kennedy of AlixPartners were appointed Joint Administrators of the Company.

An Administration is a procedure available to companies that are insolvent.

It gives the Company protection from its creditors and allows the Joint Administrators to assess the options for the business.

Whilst the Company is in Administration, the affairs, business and property of the Company are managed by the Joint Administrators.

The Joint Administrators act as agents of the Company in Administration and without personal liability.

As you may be aware, the business has been operating in a challenging trading environment, which became progressively more difficult due to factors that reduced lending volumes, as well as changes within the regulatory environment in which the Company operates.

As a result, the financial performance of the Company has deteriorated and been considerably below forecast profitability. The business was not in a position to continue to meet all its debts as they fell due and was likely to become balance sheet insolvent and fall below required regulatory capital obligations.

Steps were therefore taken to protect the assets of the Company by placing it into Administration.

The Joint Administrators have worked with the Company to stabilise its operations. As part of this process, and to ensure that any impact on customers is minimised, the Joint Administrators enabled the Company to continue to provide lending facilities to some existing customers in accordance with the Company’s current lending practices for a defined period of time.

This period has now ended - please see the following section for further details

The Joint Administrators are in regular contact with the FCA to ensure all regulatory matters are attended to and the FCA has consented to the Joint Administrators’ appointment.

The Company remains authorised and regulated by the FCA.

The Administration does not change the payment terms and conditions of your account, which remain as agreed when the account was opened.

Contractual minimum repayments will continue to be due under your existing terms and conditions and you should continue to repay your balance in accordance with the agreement signed when your account was opened.

If you do not keep up with your contractual minimum repayments, your credit score could be affected which may impact your ability to obtain credit in the future. The other consequences set out in the terms and conditions governing your account will also continue to apply.

The Company remains subject to the same regulatory rules and requirements as it did prior to the Administration.

Yes. You should still be able to access your account dashboard and will be able to continue borrowing if you meet the appropriate criteria explained below.

On the Administrators' appointment, certain active customers were given continued access to their existing facilities for a period of time. Credit limits were reduced on a monthly basis during this period, with notifications sent to those customer affected.

Lending has now ceased with effect from 31 May 2023 for all customers.

Section 7 of CCA 2006 requires creditors to issue statements to debtors setting out specified information in respect of running account credit agreements at intervals of not more than 12 months. The Indigo Michael Ltd loan facilities trading as SafetyNet and Tappily are closed and lending limits were decreased to £0 and no further interest will be charged. There is no requirement to issue monthly statements.

We are still reporting to the credit bureaux and in order to stay out of arrears (or prevent worsening of existing arrears) a payment of £20 must be received by the end of each calendar month unless otherwise arranged (e.g. by a payment plan).

If you are in financial difficulty and/or are struggling to make your contractual minimum repayments, please contact one of our customer service representatives who can look into options that might help, as follows:

Tappily/SafetynetCredit

By email at: help@imladmin.co.uk

You can check on the government website for any benefits and financial support available to you, as follows: https://www.gov.uk/check-benefits-financial-support

The following advice services are also available:

The Company has received a number of complaints (from a minority of customers), some of which are still in the process of being reviewed. Once these claims are assessed we will contact customers to advise of the outcome via a final response and explain what that means for them.

If you believe you have grounds for a complaint against the Company you may be entitled to make a claim. You can submit a claim to the Company using the contact details shown above. Claims submitted will continue to be assessed on their merits in accordance with the Company’s existing policies and procedures.

Unsecured claims are paid after the costs of the administration, amounts owing to secured creditors and certain other statutory amounts.

The Joint Administrators believe that a dividend will be available to unsecured creditors in this case. The funds available will be distributed equally between all unsecured creditors in proportion to the amounts owed to each of them.

Due to the level of claims against the Company, the dividend is expected to be relatively small (a few pence for every pound owed) and creditors will not receive the full amount due to them. For example, if a dividend of 5 pence in the pound is available, a creditor who is owed £100 can expect to receive a dividend of £5.

As the funds will need to be distributed between all unsecured creditors at the same time, the Joint Administrators will need to give all potential creditors the opportunity to submit a claim against the Company and these will all need to be reviewed and adjudicated before payments can be made to any creditors.

Due to the volume of claims and the fact that complaints continue to be received, it will be a number of months before a dividend is paid. Creditors will be notified when the Joint Administrators are in a position to make the distribution.

Where a complaint is upheld and a final response has been issued showing an amount due that would otherwise have resulted in a cash settlement, customers are being provided with details of how to submit details of their unsecured claims for the amount they would have received. Once a claim has been submitted, creditors do not need to take any further action and will automatically be registered for any updates that are issued.

No. The FSCS do not cover claims under consumer credit agreements.

Any claims which were being handled by the FOS have now been handed back to the Joint Administrators who will assess them in due course. You do not need to resubmit your claim. Once these claims are assessed we will contact customers to advise of the outcome via a final response and explain what that means for them.

The FOS has advised that it will stop considering any complaints against the Company as a result of the Administration.

Where claims have already been assessed by the Company and a final response issued prior to being referred to the FOS, the previous assessment remains in place and these complaints will not be reviewed any further.

For all other complaints, these will be assessed on their merits in accordance with the Company's existing policies and procedures and customers then will be contacted to advise them of the outcome.

You don’t need to use a claims management company (CMC). Using a CMC or other third party will not speed up the complaint process and may expose you to their charges. There is unlikely to be any funds to pay any CMC or third parties’ charges and so you may want to take advice before instructing a CMC or third party.