Lender in Focus 1.5: SafetyNet Credit FAQ

safetynet-credit-faq

SafetyNet Credit FAQ

It isn’t aways easy understanding the why’s and wherefores of the finance industry. In this chapter of our Lender in Focus series, we look at the SafetyNet Credit FAQ section. As always, the aim is to provide detailed information to help you in the best way possible.

How do I use a SafetyNet Credit’s facility to prevent paying unauthorised overdraft fees?

Money can be easily transferred to your account when you are about to go overdrawn. The amount of money this could be will depend on your pre-agreed credit limit.

If you receive approval for credit after completing your application, you can borrow money by:

  • Switching on SafetyNet Credit’s automatic deposits. And then setting the amount you want your account balance to be to trigger an automatic top-up of credit. SafetyNet Credit will then detect when you reach this level and automatically transfer money into your account. This should prevent you from going overdrawn.
  • You could also borrow money, up to your available credit, whenever you want through your SafetyNet Credit dashboard. You can choose not to have the automatic deposits and just manage your account yourself manually.
  • It is worth noting that if you reach your SafetyNet Credit limit and continue to spend more money, then you could still have to pay bank charges.

Is there a charge for using SafetyNet Credit?

The money management tools you use to manage your SafetyNet Credit account are completely free of charge. SafetyNet credit only charges you for the money you borrow.

To check if you are eligible for the SafetyNet Credit facility, you will need to undergo credit and affordability checks.

Will my bank allow me to submit my internet banking details?

Different banks have different terms and conditions. Some banks say they may not be liable if you suffer any losses caused by fraud. That is if you have intentionally or with gross negligence not kept your security details and login details secure. Or, you have given them to a third party.

If your use of SafetyNet Credit caused fraud on your account, then your bank may not reimburse any losses you suffered because of this.

Looking at SafetyNet Credit FAQ

SafetyNet Credit has high-security measures in place, meaning that this should not occur.

Banks such as:

  • Nationwide
  • Barclays
  • NatWest
  • RBS

mention in their terms and conditions they are able to hold customers liable for any losses. Losses caused by unauthorised transactions or fraud. And, that occur on their account as a result of them using an account aggregation service.

SafetyNet Credit is not an account aggregation service. This means that applying to or using SafetyNet Credit should not be a breach of bank terms and conditions such as these.

SafetyNet Credit uses Yodlee. Yodlee’s service could be considered to be an account aggregation service. Many reputable companies use Yodlee, including many leading financial institutions and banks. CashLady were not aware that Yodlee’s service has ever given rise to fraud or unauthorised transactions.

What if you worry about how your bank would view you using SafetyNet Credit? Alongside your encrypted bank login details being provided to Yodlee. Then, you could speak to your bank directly.

What happens to my internet banking login details once I put them into SafetyNet Credit’s website?

SafetyNet Credit is always committed to ensuring their services and your profile is kept within a secure environment.

Their data partners, Yodlee, receive your encrypted details which they then hold securely. Yodlee provides online banking solutions to over 300 leading financial institutions. As well as, 30 million customers all over the world.

You are only giving SafetyNet Credit read-only access to your bank account. This means they will only be able to view your account activity and do not have the ability to make any changes or set up any direct debits or standing orders.

SafetyNet Credit makes sure all data is handled under data protection laws and their own privacy policy. They use 256-bit encryption and use monitoring and verification by VeriSign.

What is Yodlee?

SafetyNet Credit is provided with online account viewing tools through an internet portal by Yodlee. This is so that SafetyNet Credit can give you the SafetyNet Credit facility and personal money management tools.

Yodlee was established in California. They have been providing account viewing tools to internet portals and banks for more than 10 years. More than 300 million financial institutions and 30 million consumers use Yodlee all around the world.

Can any person access my internet banking details?

No. The banking details you enter on SafetyNet Credit’s website travel securely to their servers using 256-bit SSL. This is the same type of encryption used on internet banking websites.

These encrypted details will then be passed to their data partner, Yodlee. Yodlee will store your encrypted data in a highly secure data centre. The only use of this data is to generate the read-only data-feed. A feed that enables your money management tools and the SafetyNet Credit facility to work. Yodlee also has strict privacy policies.

How long does it take to transfer a manual SafetyNet Credit instalment into my current account?

If you are approved for a SafetyNet Credit facility it will normally take less than 15 minutes for the money to transfer into your bank account.

Sometimes, it can take up to 2 hours, depending on your bank.

If you are a new applicant, it can take up to 24 hours to set up your SafetyNet Credit facility on top of the time it takes your credit instalment to transfer.

Will SafetyNet Credit run a credit check on me?

Yes, SafetyNet Credit always run credit checks before approving anyone for a loan. This is part of their commitment to responsible lending.

SafetyNet Credit will take your personal circumstances into account to calculate the right level of credit to give you. To enable them to do this, they may assess your application using a process called credit scoring. Credit scoring assesses your ability to pay and your credit stability. It is designed to ensure all applicants receive fair treatment and it produces consistent decisions.

SafetyNet Credit will also report your SafetyNet Credit repayment behaviour to the credit bureaus.

What if you repay your balance on time and do not fall into arrears or avoid missing payments? Then, using SafetyNet Credit could help to improve your credit rating.

Is using the SafetyNet Credit facility always cheaper than an unauthorised overdraft?

It can be expensive to use an unauthorised overdraft. This may not be the best way for you to borrow money.

So you can compare SafetyNet Credit’s charges with unauthorised overdraft charges, they have produced this table:

SafetyNet Credit charges

SafetyNet Credit FAQ

This table was accurate from December 2014.

SafetyNet Credit could be more cost effective than using your unauthorised overdraft. That is, in many circumstances. SafetyNet credit has analysed bank charges for unauthorised overdrafts. And they are confident in most ‘real life’ scenarios, their customers would be saving money by borrowing with them. Rather than using unauthorised bank overdrafts.

There may be certain circumstances where it could be cheaper to use an unauthorised overdraft. For example, this could be the case if you are looking to borrow more than £300 for more than 20-30 days. Yet, some banks may not allow you to do this.

What does SafetyNet Credit’s market analysis show?

Particularly, by applying various assumptions to do with period and amount of borrowing. It shows that SafetyNet Credit is generally cheaper than an unauthorised overdraft.

When they were preparing assumptions for the table, SafetyNet Credit accounted for the way customers used unauthorised overdrafts. And, what could be considered as acceptable usage of unauthorised overdrafts. Without payments being dishonoured or triggering adverse consequences.

The table does not factor in the costs of possible extra charges related to unauthorised overdrafts. Especially, for things such as letters from the bank manager or returned direct debits. These items could be in addition to the basic charges for an unauthorised overdraft. Something SafetyNet Credit compared themselves against. This would make SafetyNet Credit even cheaper when compared to unauthorised overdrafts.

Unlike SafetyNet Credit’s facility, unauthorised overdrafts are repayable on demand. Besides, customers using unauthorised overdrafts are left with uncertainty. Often over whether payments are going to be honoured or whether they will have access to money when they need it.

When is a SafetyNet Credit facility not suitable?

You should not use a SafetyNet Credit facility if you lack control of your expenditure. As well as, use the credit to buy anything that you cannot afford to repay. SafetyNet Credit is designed as a short-term facility and should not be seen as a form of long-term credit.

How do I set up/stop automatic credit instalments being transferred into my account?

Through your personalised dashboard, you will always have control of your SafetyNet Credit facility. You are able to turn the automatic credit instalment facility off or on. To do this, you just need to click on the appropriate button on your dashboard.

Do SafetyNet Credit keep my information and details if I cancel my profile with them?

SafetyNet Credit will keep your details and information stored securely for as long as they are legally required to do so.

For more SafetyNet Credit FAQs, take a look at their website.

Would you like to learn about the complaints and refund procedure? Read this to find out.