Credit, Collections & Insolvency News
High-cost short-term specialist lender, Indigo Michael trading as Tappily and SafetyNet has entered administration.
Joseph O’Connor, Clare Kennedy and Simon Appell of AlixPartners UK LLP have been appointed Joint Administrators.
Indigo Michael employs roughly 250 people and has about 150,000 active customers. The company is a high-cost lender which provides customers with running account credit facilities; these are credit agreements with no fixed or minimum duration. Running account credit is a facility under a credit agreement through which the borrower can receive cash up to a certain credit limit.
The firm’s administration does not change the payment terms and conditions of customers’ loans, these are the same as when the loan was taken out. The firm remains subject to the same regulatory rules and requirements as it did prior to its administration. The firm is not accepting applications for loans from new customers from 9th January 2023.
Existing active customers who have drawn down on their account within the 30 days before the Joint Administrators were appointed and currently have no arrears on their account, will continue to have access to their existing facilities for a short period. Credit limits will be reduced in coming weeks, affected customers will receive communications from the Joint Administrators.
Customers who have not used their running account credit facility within the 30 days before the Joint Administrators were appointed, or currently have arrears on their account, will not be able to access any further lending.