The AFM imposes an order for incremental penalty payments on cash advance provider Ferratum Netherlands B.V.


The Netherlands Authority for the Financial Markets (AFM) hereby announces that, on 8 May 2012, it imposed an order for incremental penalty payments on Ferratum Netherlands B.V. (Ferratum). This provider of cash advances trades, among others, under the name Saldodipje. Ferratum fails to comply with the requests for information from the AFM, which needs this information concerning, inter alia, the credits that have been provided, in order to be able to establish whether the law is being broken.

The AFM suspects that Ferratum has offered consumers credit, or continuous to offer consumers credit, via its websites and, without holding a mandatory AFM licence. It is prohibited by law to offer credit in the Netherlands without holding a licence.

Ferratum did not provide the requested information within the term set. Ferratum has consequently been obliged to pay incremental penalty payments as of 8 August 2012. The requested information still needs to be provided to the AFM. The incremental penalty payments will increase by €4,000 for every day Ferratum fails to comply with the order, subject to a maximum of €80,000.

It is important that financial service providers hold an AFM licence. It offers protection to consumers. Before the AFM grants a licence, it first checks, inter alia, whether a financial service provider satisfies the requirements of reliability, expertise and integrity. Moreover, a financial service provider that holds a licence has to comply with the so-called continuous rules of conduct. These concern, among others, careful services to consumers.

What is an order for incremental penalty payments?

An order for incremental penalty payments is an instrument that is used to order a company or person to perform or cease performing a certain act. If the order is not complied with within a specific term, the company/person is obliged to pay a sum of money. In the present case, the AFM is attempting to obtain information that is required to perform an investigation into a possible violation.

If you have any questions or comments you can contact the Financial Markets Information Line on: 0800-5400 540 (free of charge).

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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