Revolving credit facility - where do I stand ?

Mr.Wrong

Default Revolving credit facility - can’t afford
Hi all, so I opened a online credit facility with SafetyNetCredit as my credit score was too low to be offered an overdraft with my current account @ Halifax.

I opened it in summer time 2017 and I was given a £150 limit. My wages come in on a Friday and needles to say they were gone most weeks by Saturday morning as I unfortunately had a gambling problem (clean,onwards and upwards now)
So before I knew it I was living in my credit line, it Is linked to my online banking so it sees my account balance when the wages go in and takes what is owed, either in full or a particular amount of it.

I would then borrow from my credit facility again and again and again and every single month without fail they would offer me a credit limit increase.

They had access to my bank transactions(see only) so could see when assessing my account where my money was going.

My life became a bit of a mess and I had two guarantor loans, multiple payday loans I couldn’t afford as well as owing friends and family.
It got to the point where safety net credit would take every penny except for £50 when my wages came in, and would then allow me to borrow back instantly minus the interest they’ve just taken payment for. So I would lose roughly £100 per week, whilst they continued to offer me credit limit increases.

In December 2017 my balance was £1062 with a credit limit of £850
I hadn’t made a payment except for the interest each week - then borrowing back whatever I could.
In January this year I still hadn’t made a proper payment and they offered me a further £120 credit increase knowing i haven’t been paying.

I’ve currentlly got £1800 coming in with £2069 going out without the SNC payments.
Yet they’ve assessed my accounts and deemed me worthy of a credit increase.

I was at work the other day and a colleague claimed that I could claim back interest or even have the amount written off due to them not lending responsibly.

I’m in the process of getting in touch with citizens advice I just thought I’d ask your opinions on where I stand?
I can’t afford the payments, Is my first steps to talk to SNC and let them know I’m steuggling and to freeze interest? Or go to citizens advice first?

Sorry for terrible grammar.

I appreciate ALL opinions.
Trying to turn my life around but payday loan interest is holding me back.

Thank you all

National_Debtline

Hi there,


Safety Net Credit just appear to be a short term lender with very high APR which means the first step is to take control of your account again. Once that has been dealt with, you can look further into disputing/ repaying the debt.


Short term loans normally set up something called a continuous payment authority as part of their contract which allows them to take payments even after the direct debit it cancelled. A payday loan is no more important than any other credit debt but before you can deal with it you will need to cancel their ability to access your account. You need to send a letter to your bank to cancel this authority - https://www.nationaldebtline.org/EW/sampleletters/Pages/Withdraw-your-continuous-payment-authority-from-your-card-issuer-%28sole-name%29.aspx


With regard to irresponsible lending, this is not a clear cut issue and would ultimately fall to the discretion of a complaint, the Ombudsman or court. If you feel that is what they have done you will need to raise a complaint with SNC to begin with. Highlight why you feel their actions in lending were irresponsible and ask for a reduction/ write off of the debt. If they don't do this and you are unhappy as to their justification, escalate the matter to the Financial Ombudsman Service.

Please be aware, that there is also an issue of responsible borrowing and it is possible your gambling addiction will play a part in this process. That doesn't stop you raising a complaint but please just be aware of it. Good luck,


Laura
@natdebtline

Mr.Wrong

Thank you very much !