Letter from Ferratum? Here's how to handle it (and check for redress)

If a letter from Ferratum has just landed for an old short-term loan, this guide will help you handle it — and check whether the loan should have been granted in the first place. Ferratum is a Finnish-headquartered short-term lender with an FCA-regulated UK arm. The pattern — short-term loans at high APRs to UK consumers — is similar to Wonga and Sunny, and the same kind of affordability complaint route is open if the loan was unaffordable on day one.

This page covers who Ferratum are, what they can legally do, how affordability redress works, and how an IVA writes off the remaining balance.

Who Ferratum are

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Ferratum Group is a consumer- and SME-finance business headquartered in Helsinki, Finland. The group rebranded as Multitude SE in 2021, listing on the Frankfurt Stock Exchange. The UK arm operated under the Ferratum Money brand and was authorised and regulated by the Financial Conduct Authority for consumer-credit lending and collection. Some UK product lines have been wound down, but legacy balances remain in collection.

In the UK, Ferratum was subject to the FCA’s high-cost short-term credit rules, including the price cap on payday-style lending and the strict creditworthiness requirements set out in CONC.

What Ferratum can and cannot legally do

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Ferratum are an FCA-regulated lender, not bailiffs. They can:

• Write to you, call you and contact you by SMS or email
• Add interest and default charges within the price cap and original agreement
• Apply for a County Court Judgment (CCJ) if they believe the debt is enforceable
• After a CCJ, support attachment of earnings, charging orders or High Court enforcement
• Sell the debt on to another debt purchaser

They cannot:

• Force entry to your home
• Take goods without a court-issued warrant of control
• Threaten arrest — debt is civil, not criminal
• Continue contacting you after a written request to stop
• Add fees beyond the FCA price cap
• Disclose the debt to neighbours, family or your employer

The affordability-complaint route

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Like Wonga, Sunny, QuickQuid and other failed UK short-term lenders, Ferratum is exposed to affordability complaints under the FCA’s CONC rules. Successful complaints typically achieve:

• A refund of interest and charges paid on the unaffordable loan(s)
• Removal of adverse markers (defaults, late payments) from your credit file
• Write-off or reduction of any outstanding balance still owed

The complaint test is whether Ferratum properly assessed your ability to repay sustainably out of income, taking your other commitments into account. Repeat lending, lending while you were already in default elsewhere, and lending into obvious payday-cycle dependency are all common grounds.

The process:

1. Complain in writing to Ferratum, listing the loans, the dates, and why each was unaffordable
2. Ferratum has 8 weeks to issue a final response
3. If rejected, or no response in 8 weeks, escalate free of charge to the Financial Ombudsman Service

Don’t pay a claims-management company a percentage to do this — it’s straightforward to do yourself.

Step 1 — confirm the debt and the dates

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Before paying, confirm what’s owed and when the last payment or written acknowledgement was. Most consumer debts in England and Wales are statute-barred under the Limitation Act 1980 after six years without a payment, acknowledgement or court action. Don’t make a token “goodwill” payment before checking dates — it resets the clock.

Step 2 — choose the route

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The realistic options:

• Pay in full with a settlement discount where possible.
• Affordability complaint — potentially zero balance plus a refund.
• Affordable repayment plan if the loan was affordable and the debt is genuinely yours.
• IVA to combine Ferratum with every other unsecured debt over a 5–6 year term, with the unpaid balance written off at completion. Eligibility starts at around £5,000 of total unsecured debt.
• Debt Management Plan for smaller balances.
• Debt Relief Order for total debt under £50,000 with very low spare income.
• Bankruptcy for severe situations.

Affordability complaints and an IVA are not mutually exclusive — a successful complaint reduces the IVA balance.

Pitfalls with Ferratum

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• Don’t pay a claims-management company a percentage to make an affordability complaint you can make yourself for free.
• Don’t ignore CCJ paperwork. Ferratum-purchased debt sometimes ends up in court via successor collectors.
• Don’t make a goodwill payment before checking dates and considering an affordability complaint.
• Don’t assume the international parent changes UK rights. UK rules govern UK loans.
• Don’t forget to include any successor purchaser if the debt has been sold on.

Frequently asked questions

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Are Ferratum bailiffs? No. They are an FCA-regulated lender. They cannot force entry or take goods.

Can I claim affordability redress? Yes — same route as Wonga, Sunny and QuickQuid customers. Complain to Ferratum first, then escalate to the FOS for free if rejected.

Will an IVA include my Ferratum debt? Yes — unsecured consumer credit goes into an IVA on the same basis as any other unsecured debt.

How do I stop the calls? Send a written contact-by-post-only request — under CONC they must comply. The debt does not disappear, but the phone calls do, and any further communication has to be in writing where you can keep a record.

Has Ferratum left the UK market? Some Ferratum UK product lines have been wound down to new lending, and the group rebranded as Multitude SE in 2021. Legacy balances and complaints continue to be administered, and existing customers retain full rights to affordability redress through the Financial Ombudsman Service.

Related guides

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• Lowell Financial — major debt purchaser
• Cabot Financial — major debt purchaser
• Do debt collectors give up?
• How long can I be chased for a debt?
• How do I apply for an IVA?