Lender in Focus 7.5: Ferratum FAQ

Ferratum FAQ

Ferratum FAQ

Preparing to borrow money can lead to important questions. As a responsible borrower, you will want to know who you are dealing with. As such, this is where the Ferratum FAQ could be of great use to you.

You might have questions about the terms of the loan, what you can expect and what others have thought of their own borrowing experiences.

This Ferratum FAQ answers many of the most common questions about their short-term and instalment loans.

Ferratum FAQ: Who is behind Ferratum loans?

The Ferratum Group operates in 23 countries worldwide.

Products include the 100% online Ferratum Bank, which operates as a European bank with free money management in any European country.

Ferratum also offers loans in various countries.

The registered office is:

Suite 318
25 Goodlass Road
Liverpool
Merseyside
L24 9HJ

Ferratum is registered with the Financial Conduct Authority. You can find the lender on the Financial Services Register using the reference number 672537.

What kind of loans do Ferratum loans offer?

Ferratum’s short term loans are for relatively low amounts of money, even in comparison to other instalment loans.

These loans are best suited to emergency outgoings including bills, vehicle repairs and boiler repairs, for example.

With Ferratum you can borrow between £50 and £500 as a new customer. Existing customers may be able to borrow up to £1,000.

Loans are provided as payday loans, over a 1-month term, or as instalment loans over a maximum of 4 months.

Longer terms can reduce your monthly instalments, but will usually result in a more expensive loan overall. You can make your loan cheaper by choosing a shorter loan term, but will typically pay more each month.

For example, a £400 Ferratum loan borrowed for 1 month could accumulate £96 of interest. The total repayable would be £496. If you borrow the same amount over 4 months, you could pay £265.48 in interest, resulting in a total repayment of just over £665.

In addition to providing an online loan application form, Ferratum offers loans by text. Text loans are only available to existing customers that have repaid what they previously borrowed.

What is the APR of a Ferratum loan?

Ferratum loans have a representative APR of 1,270%.

At least 51% of customers must achieve this APR or better.

How can I apply for a loan from Ferratum?

You can apply online for your first Ferratum loan.

Use the online loan calculator to determine how much you would like to borrow and how much you can afford to pay back. You can fine-tune your loan application, to make sure that it is affordable.

At this stage, the figures used are estimates. Your actual loan cost may be different, once your personal circumstances have been taken into account.

Once you have decided how much you would like to borrow, you can apply online for the loan.

Ferratum will request information including some personal and financial details. This information will be used to check your identity. It will also be used to confirm that you can afford the loan you’re applying for.

If you have had a successful loan with Ferratum in the past – repaying on time and in full – you can make use of the text loan service for any future borrowing. You can use this to borrow money on the go, by sending a short SMS to Ferratum’s text loan number.

Are there minimum requirements to meet?

Before applying for one of Ferratum’s instalment loans, check that you meet their minimum criteria.

You should:

· Be employed.

· Have an email address and mobile phone number.

· Have a bank account and debit card.

Ferratum does not specify a minimum income requirement.

This does not mean that you will be offered a loan if your income is very low, but does leave the application open to part-time and full-time employees.

Before your loan is approved, Ferratum will check that your financial situation leaves you able to make your debt repayments.

If you need help working out how much you can afford to pay, then you can use an affordability calculator.

Will Ferratum run a credit check?

Ferratum will check your credit file as part of the decision-making process.

You will need to give the lender permission to access your file. If you do not give this permission, your application cannot be processed.

Credit checks are important. They give lenders an insight into your borrowing history, to see if you can be expected to reliably meet your commitments.

A poor credit score will not necessarily lead to an unsuccessful application. Your credit score is just one factor that is taken into account.

Ferratum checks your credit file with Equifax and Callcredit.

Is Ferratum a trustworthy lender?

Ferratum operates in 23 countries across the globe.

The company was founded in 2005 and has 1.2 million customers.

On Trustpilot, Ferratum has received a score of 9.2 out of 10. This is an ‘Excellent’ score and indicates that customers are generally very happy with the lender. 86% of all loan reviews have 5* ratings.

The lender is authorised and regulated by the Financial Conduct Authority and has offices in the North West of England.

ferratum loan repayments

How are loan repayments taken?

This lender uses Continuous Payment Authority (CPA) to take your loan repayments. With Continuous Payment Authority, money can be taken straight from your bank account without your permission each time.

The lender must stick to a plan for collecting repayments, which will be agreed during the application process. Continuous Payment Authority gives lenders the ability, but not the right, to make changes to repayment amounts or dates.

If you would prefer to make your repayments in a different way, you can withdraw from the CPA. You will still be responsible for your debt, so it’s important to make an alternative arrangement immediately.

If you have money available and would like to make your repayment a little earlier than scheduled, then you are able to do so. You can arrange early repayment by text or by phone. You can also make a direct bank transfer, rather than waiting for your scheduled payment date.

What happens if I cannot repay my loan?

Debt problems can mount unless they are quickly addressed.

If you think that you will be unable to make your next repayment, you should contact Ferratum straight away.

Lenders have a responsibility to help you with your financial difficulty. They should be responsible and fair.

For the first 60 days of late repayment, interest and charges will continue to mount. After 60 days, these will be frozen.

Ferratum aims to help customers with an affordable repayment plan. It is recommended that you fill in a Statement of Means form, so that realistic amounts can be calculated.

If you still have concerns about repayment, or if Ferratum loans are not your only debt, then you may want to contact a UK debt charity.

How do I contact Ferratum?

The Ferratum office is open 6 days a week, from Monday through until Saturday.

The UK call centre can be reached by dialling 0151 601 8611.

You can email customercare@ferratum.co.uk, or text your enquiry to 07860 020302.