Lender in Focus 7.6: Ferratum Loans complaints and refunds

ferratum complaints

ferratum complaints

Ferratum complaints are few and far between. In fact, the lender scores 9.2 out of 10 on loan reviews with Trustpilot.

Most customers are very happy, though it would be virtually impossible for any company to get a score of 10 out of 10.

Most of the complaints about Ferratum’s short term loans are from customers that are not happy with second loan applications. This is part of their approach to responsible lending.

If customers have not been happy with their experience of borrowing from Ferratum, they can choose to make a formal complaint.

Though customer service advisors respond to all negative loan reviews on Trustpilot, making an official complaint is the best way to guarantee a reply.

How Ferratum loans complaints are made

If your experience with Ferratum’s instalment loans has not been everything that you had hoped for, then you can contact the lender directly.

Ferratum has a responsibility to respond to all complaints.

To make communication easier, Ferratum has just one phone number for all of its queries and questions. You can also write a letter or email if you’d prefer.

According to the lender’s policy, most complaints will be resolved in a maximum of 5 working days.

Some complaints can take longer. Ferratum has a maximum of 8 weeks to provide a satisfactory resolution. But, the lender should acknowledge your complaint very quickly.

Ferratum’s final resolution is the best way that they feel they can deal with your complaint. If this isn’t offered within 8 weeks, or if you are unhappy with the answer that you’re given, then you can take things further.

Complaining to the Financial Ombudsman is the next step in the process, and should bring you the answers that you need.

Complaining to the Financial Ombudsman

The Financial Ombudsman is an independent and impartial complaints investigator.

If you have been unhappy with the response provided by Ferratum, then you can ask the Ombudsman to investigate.

The Financial Ombudsman may decide that Ferratum’s response has been adequate. If not, your complaint will be upheld and further action will be taken.

Types of complaints about Ferratum loans

types of complaints

Reviews of Ferratum’s short term loans can show what previous customers have thought.

Unhappy customers will usually post a negative review if they have been unhappy with the service.

Ferratum loan reviews are generally very positive. A few have 1* ratings, but you will find very little in between. Customers are generally very happy, or very unhappy, with the service that they’ve received.

Almost all of the negative complaints come from customers that have previously borrowed from Ferratum. They may have repaid their short term loans on time but when they next apply, their application is refused by the lender.

Whilst the experience of being refused a loan can be upsetting and frustrating, it shows that Ferratum is acting responsibly.

Previous experiences cannot guarantee future successes. Ferratum cannot rely on a customer’s borrowing history. A customer’s situation may have changed since their last Ferratum loan.

New affordability assessments must be carried out for each application.

Ferratum responds to complaints of this nature:

“Although we are keen to do business we are a responsible lender and the FCA requires us to perform assessments of credit worthiness and affordability. We make our lending decisions based on the information available to us at the point of application.”

Almost always, Ferratum complaints can be resolved within their 5-day window. Occasionally, more difficult issues come from customers in financial difficulty. Or, people that struggled to make their payments.

The following complaints and 1* loan reviews are genuine. They come from Ferratum customers:

“Ferratum WERE great initially. Applied for a loan and was accepted and money was paid out. Process was really quick and straightforward. After repaying the loan in full and on time I applied for another loan. Despite the fact that no changes had been made to my credit file since my first loan was approved, and despite the fact that first loan was paid in full and on time, Ferratum chose to decline my second application.”

“Applied and approved 2nd July. Money went in really quick. Was impressed, then repaid as directed. Car had another issue so I thought I would apply again, this time was declined. We can not help you on this occasion.”

Ferratum loans refunds and compensation

If you have a serious complaint about Ferratum loans and have not received an adequate response, then you can contact the Financial Ombudsman.

If your complaint is upheld, you may receive financial compensation. Alternatively, you may be offered a full or partial refund.

The Financial Conduct Authority regulates the short term loans industry. After the FCA was created, it looked into the dealings of all of the UK’s lenders offering short-term and instalment loans.

Each lender was short-term If they were found to have acted unfairly, or to have been irresponsible with their lending, then they were ordered to pay compensation.

All lenders then needed to apply to be FCA authorised and regulated, to continue trading.

Ferratum has received full FCA authorisation, as a reflection of good service and responsible lending. This lender was never required to make a large-scale compensation payout.

If you do feel that compensation is deserved, then you have a right to make a complaint. Ferratum may choose to provide compensation, or your case might be referred to the Ombudsman.

Even with a vast majority of reviews being positive, Ferratum might not get it right every single time. But, to protect customers, the Financial Conduct Authority may withdraw authorisation if there are concerns about a lender’s behaviour.