Ferratum - claiming back interest charges

[LeeC]

Hello all

has anyone had any dealings with Ferratum?

i like many people have gotten into the cycle of taking multiple payday loans out to pay another back and to make ends meet ending up in a debt spiral so im amazed that this company state on their website FAQs " we only lend to people who have a clean credit file " i do not have a clean credit file, i have 7 defaults!!!!

in the past 2 years i have totalled up 30 PDL with them so if they have been credit checking me surely they would of seen the other debt issues i had with being in arrears, having defaults etc as i struggled to pay other PDL back! each time they let me up the amount i could loan, first it was 50 then soon it ended up at 200/250 and the interest on it is outrageous.

i have calculated that over 30 repayments to these that £945 of it has been interest alone, i know im responsible for taking out the loans but surely its irresponsible on their part for keep lending me the money and keeping me in debt! so much for only lending money to people with a clean credit file

whats the chances of being able to claim back all that interest i have paid?

i need a PDL expert to help me

[cymruambyth]

Re: Ferratum - claiming back interest charges

Our PDL expert is saltnvinegar, send him a pm to ask him to look at your thread.

[SaltnVinegar]

Re: Ferratum - claiming back interest charges

Hi LeeC

Welcome to AAD!

Do you have any outstanding loans with this company?

I'm going to set some realistic expectations here - the chances of you getting any sort of refund back from this company are slim. There are companies that have been forced to refund customers by the OFT/FCA, but its when they have finished a formal investigation and found evidence of endemic irresponsible lending.

That said, it is worth raising a complaint to the FCA but depends on the circumstances.

[LeeC]

Re: Ferratum - claiming back interest charges

Hi Saltnvinegar

yes i have 1 that is due for payment 27th Oct, i guess my issue was they say they are a responsible lender who lend to people with a clean credit file but mine is trashed so they should have seen i had issues and rejected the applications, not taking advantage.

[SaltnVinegar]

Re: Ferratum - claiming back interest charges

Hi Saltnvinegar

yes i have 1 that is due for payment 27th Oct, i guess my issue was they say they are a responsible lender who lend to people with a clean credit file but mine is trashed so they should have seen i had issues and rejected the applications, not taking advantage.

Unfortunately for you their argument will be that they made an assessment of affordability based against the information you provided during the application process, and if this passes their lending criteria (even with the CRA information) then they will offer you a loan.

This position is (even more unfortunately) supported by the FOS........

What you do choose to do depends on your view of risk but basically they are this:

1) Take a personal view that they should not have lent you the money, that you have bigger things in your life right now to sort out, and ignore them and not pay them a further penny

Risk to the above approach, is that they will report defaults to the credit reference agencies, which may prevent you getting credit for a while, and they may (although tiny chance), issue a court claim against you (though they may not like a Judge taking a view of whether allowing someone to take 3 loans is responsible as this could be VERY bad for their business model). You will also get bombarded initially with phone calls and letters from their collections departments, and possibly collection agencies if they sell the accounts on.

Benefit to this is you know the balances at worst can only double. It can give you some breathing space when you get back on your feet, both personally and financially. You can then either continue to ignore them until the debts become statute barred (if they don't issue a court claim), or you can then offer a F&F payment to write off the debt, or still offer a payment proposal if you wish

2) Write to them arguing irresponsible lending and asking for the loans to be written off

Risks are the same as option 1), however you are establishing a cause of complaint, and offering a reason for non payment. Benefits are also the same as 1) with the added benefit that if they do not respond in the prescribed timeframes for a complaint you can drag things out even further. It may also give them pause from issuing a speculative court claim. You may also get one or two of the loans written off as a goodwill gesture

3) Write to them offering a payment arrangement

Believe it or not the risks are still the same as option 1). You can be in a payment arrangement, and still have a court claim issued against you! Its less likely, but it still may happen.

Benefits are, you are paying off the balances, and you are in control. It also gives you more leverage, as if they refuse your offer unreasonably, they are in breach of FCA guidelines.

However I would NOT respond to anything asking for proof of income, when you were made redundant, starting jobseekers allowance etc. This would open up a can of worms for you, and a creditor has no legal right to ask for this information anyway.

Ultimately its your choice what you would like to do, but hopefully the above helps you make that choice a little better informed. Whatever you choose we'll be able to give you guidance on how to approach them.

[LeeC]

Re: Ferratum - claiming back interest charges

thanks SNV

i have already wrote to them arguing irresponsible lending and they are investigating my complaint, should hear back in 4 weeks, already cancelled the CPA and debit card, moving banks soon.
the balance is 120 pound on my current loan so hopefully this gives me some breathing space to save and make them an offer based on my circumstances now.