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Direct Lender Or Broker? How To Choose A Lender.

How to choose a lender

Is Ferratum A Direct Lender?

Yes, we are. You may have been introduced to Ferratum via a broker site. You may have thought the broker was a direct lender like we are, but often, these agents are our affiliates who pass your details to us when they think we can help you. You shouldn’t pay for this service. We avoid fee-charging brokers and so should you. Once you’ve had a Ferratum short-term loan, as a direct lender or through our affiliates, we handle the rest, including making the payment to your bank.

What’s The Difference Between A Direct Lender And A Broker?

There is a difference between a broker and a direct lender.  A broker simply collects your information and searches for suitable lenders for you.  They don’t actually lend you the money and you don’t pay it back to them.  You may have used brokers in the past and even been charged fees by them. Ferratum does not charge you fees or engage with fee-charging brokers.  A direct lender is a company you have the loan agreement with. The broker is simply a means of introduction, after which the direct lender takes care of you.

When you are introduced to us by one of our affiliates, we will have already decided we want to help you with a loan.  There will usually be just a small part of the application left to complete. 

How Does A Direct Lender Identify Me?

On your very first loan with Ferratum, completing the application takes about 5 minutes. This is because, as a direct lender, we want to set you up an account which you can use again and again when you need to.

We don’t need to ask you to provide physical ID or proof of bank details as our checks are very fast and sophisticated. As you move along your application, your details will be being checked and verified by various virtual ‘checkpoints’.  It’s really important to a direct lender to get this right at the beginning so that your experience with us is as smooth as possible.

Next time you apply, because you’ve taken care to be clear with us about your details, including your payday and pay frequency, we can make it even easier for you.

Why Is It Important To Know If I’m Using A Direct Lender?

Quite often we’re asked if we’re a direct lender and the answer is yes. We do have brokers working to introduce customers to us but we are ultimately the direct lender who will be making the lending decision and sending the money to your bank account.

It’s understandable that you would want to do some research before taking out a loan with a new company. There are many more brokers about than actual direct lenders so it’s worth checking who you’re dealing with.  Any brokers who do charge fees are obliged to display this information very clearly before they go ahead and provide a service. 

I Would Prefer To Deal With A Direct Lender, How Do I Make Sure?

If you are looking specifically for a direct lender then make sure the company identifies itself as a direct lender, not a ‘loan providing service’.  UK law is very specific about this but unfortunately, some rather unscrupulous brokers will try to mislead.  Nobody should be promising you a definite loan acceptance before having performed an application check so do be careful.  We can’t speak for every direct lender.  We can only tell you that Ferratum does not charge fees except the interest quoted to you when you apply.  If you repay on time, the price you see is the price you will pay. Our interest is calculated daily and because you’re dealing with a direct lender, you can also ask to repay early to save money. 

Is There Anything Else I Should Be Aware Of When Choosing A Direct Lender?

  • Make sure your direct lender is authorised by the correct agencies. All UK lenders have to be authorised by the Financial Conduct Authority. Ferratum is authorised and regulated by the Financial Conduct Authority. We are a member of CCTA and operate under all rules, regulations and guidelines we are required by FCA.
  • Make sure your direct lender has a real postal address, not just a P.O box number, and are easily contactable. Unfortunately, there are many false companies online offering fraudulent loans.  Ferratum UK’s office is in Liverpool, where our friendly Customer Care team is based. We’re also part of the wider Ferratum Group which operates in 22 countries across Europe, Australasia and North America.
  • Make sure your identity is protected. Before providing any details online check the company uses security software to protect your personal information. Any good direct lender will have this.  Look for the ‘https’// prefix on the website.