Ferratum is a short-term lender offering loans that are both simple and flexible. CashLady takes a closer look at Ferratum’s history and the services that it offers its customers.
Ferratum describes itself as smart, friendly and reliable.
Ferratum provides instalment loans, as well as the more traditional payday loan.
A payday loan is more conventionally known as something that you would pay back in only one instalment, usually on your next payday.
An instalment loan is any type of loan that can be paid back in 2 instalments or more.
If you apply for a loan with Ferratum, your loan term will be between 7 days and 6 months. This depends on whether you are an existing customer and the type of loan product you are applying for.
Ferratum calls its short term loans ‘micro-loans’ or ‘mobile microloans’. Although these are different names, microloans and mobile microloans are essentially the same as short term loans. Ferratum’s microloans are designed to help out customers with emergency expenses. These could be a broken down car or heading into an unauthorised overdraft.
Ferratum offers microloans of between £50 and £300 for new customers, with loan terms of between 7 and 37 days long. After you have repaid your loan in full, as an existing customer you will then be invited to apply for up to £500.
Ferratum also offers a PlusLoan product.This is an instalment loan repaid over 2-6 months. The loan term of your PlusLoan will depend on how much you borrow.
New customers can borrow £300 – £500 that can be repaid over a period of between 2 to 4 months. Existing customers may be invited to apply for a PlusLoan of up to £1,000, which can be repaid in up to 6 months.
Customers who are eligible to apply for PlusLoans will see this as an option when they log in to their Ferratum account online.
Once you have had an application for a Ferratum loan approved, then received it and paid it back in full, you are eligible to use Ferratum’s text loan service. This service allows you to apply for a loan by texting 07860020302. In this text, you can write the amount you wish to borrow.
For example, if you wanted to borrow £400 from Ferratum, you would text ‘NEED 400’ to the number above. Ferratum would then set up your application for you and reply.
Credit and affordability checks will still need to be carried out when you apply for a loan via text. Text loans can be taken out in multiples of £10 between £50 and £500, so you only need to borrow what you need.
They do not charge any penalties for repaying your loan early. As interest is calculated daily, you could actually save money by repaying your loan before it is due to be repaid.
Money can be in your account on the same day as you apply. Funds can be with customers within 2 hours between 9 am – 5 pm on Monday to Friday. It may take longer to get your money on evenings and weekends. Sometimes, Ferratum says that it can have the money to you within 1 hour if you apply between 9 am – 5 pm on a weekday.
Ferratum uses the Faster Payments Scheme. How quick your money will appear in your bank account depends on who you bank with and whether they support this scheme. In reality, money can appear in some customers’ banks in less than 2 hours.
Ferratum’s application form only takes around 5 minutes to fill in. After you have completed the form, you should get an instant on-screen decision on whether your loan application can be approved.
Eligibility Criteria to apply for a Ferratum loan
In order to apply for a Ferratum loan, you will need to be employed. It is outside of the ‘Responsible Lending’ guidelines for any loan provider to lend money to someone who does not have the money to pay it back.
You will also need an email address, a bank account, a mobile phone and a debit card.
Before taking out any loan you should make sure that you are able to comfortably make the repayments.
Ferratum is part of the Ferratum Group, a Finnish company which provides mobile consumer loans across 23 countries in Europe, Mexico, Canada and the Asia-Pacific region.
Ferratum’s UK address is: Ferratum UK Ltd Suite 318, 25 Goodlass Road, Liverpool, Merseyside, L24 9HJ
Registered in England No: 07349566
Their website address is: www.ferratum.co.uk
The Ferratum Group’s headquarters are in Finland at, Ferratum Group, Ratamestarinkatu 11 A 00520 Helsinki, Finland.
Financial Conduct Authority registration
Ferratum is authorised and regulated by the Financial Conduct Authority (FCA).
Their reference number is: 672537
Authorisation can be checked on the Financial Services Register at www.fca.org.uk.
Ferratum is also a member of the CCTA.
For customers who want to know how their information will be used, Ferratum provides a data protection guide on its website.
Right to cancel your loan agreement
Under the Consumer Credit Act, borrowers have the legal right to withdraw from their loan agreement. Providing it is within 14 days of signing a loan contract. If you would like to withdraw from your loan agreement with Ferratum, you must return any money you have received, together with any accrued interest. If you decide you would like to withdraw from your loan agreement, you should contact Ferratum as soon as possible.
As a responsible lender, Ferratum carries out credit checks on everyone who applies for a loan with them. They say they will only lend to you if your credit file is ‘clean’.
When Ferratum reviews loan applications, it will consider many factors including your address stability, your age and how your financial affairs were handled in the past.
Does Ferratum have a television advert?
CashLady could not find any UK television adverts for Ferratum.
However, Ferratum has released TV adverts in other countries across the world and we have included links to some examples below.
It is important to note that as these adverts are not for UK audiences, the loan terms and conditions will be different.
In this Australian Ferratum advert, customers are introduced to Ferratum and how much they can borrow. In the next advert, a man in a restaurant applies for a loan with Ferratum by sending a text from his mobile phone.
Ferratum’s Swedish TV advert shows money appearing in everyday situations.
Do they advertise on Google?
No, Ferratum does not currently have a Google ad.
Do Ferratum charge fees?
You can use Ferratum’s loan calculator to see how fees change with regards to your loan amount and repayment period. There are no other fees or hidden costs.
However, Ferratum does say that if you fail to repay on time, you will incur additional charges. If you do not make a repayment when one is due, you will be charged a £15 failed payment fee and interest on your loan will continue to be charged for 60 days.
Not paying on time could also adversely affect your credit rating.
Also, Ferratum does enlist the help of outside agencies to collect late repayments if they have not been able to make a payment arrangement with you.
Has Ferratum ever been fined?
CashLady could not find any evidence of Ferratum being fined in the UK.
Anything I need to be aware of about Ferratum?
Ferratum offers its customers the opportunity to apply for loans via text message. However, this service is only available to customers who have already taken out and repaid a previous loan.
It is also important to remember that credit and affordability checks are still carried out, even when you are applying via text message.
If you miss any loan repayments, Ferratum report in real-time to Teletrack. Not paying back your loan on time could affect your credit rating.
Ferratum says that they are able to change your repayment date twice for you if you think you may fall into arrears if they are given sufficient notice.
You are only able to take out one loan at a time with Ferratum, which means you must repay your current loan in full before you can apply for another.
When CashLady looked in January 2017, Ferratum did not appear to have a UK Facebook page.
However, the Ferratum Group did appear to have a Facebook page with 77 likes and 76 followers. There were no posts from the Ferratum Group on the wall.
Ferratum did not appear to have a UK Twitter feed but the Ferratum Group did join Twitter in November 2010. They have 153 followers.
Since joining, they have not tweeted.
Ferratum does not appear to have an Instagram account for its UK business.
Do they have an App?
Ferratum does not have a mobile app for its UK customers.