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What are the debt collection costs?

Why are the debt servicing costs deducted from my repayments and not the borrower?

The collection fees that we or any other lender, agency or court can charge a borrower are capped by law, meaning we cannot charge them the full amount. The fees collected from a borrower reduces the write-off and increases your cash flow.

When are the debt servicing costs deducted?

In general – the costs are deducted at the same time when the payment is made to your Bondora account. From the reports section you can see the amount received and the deductions made from the specific loan.

How can I calculate my overall Debt Servicing Costs?

  1. When logged in to your investor account, go to the Cash Flow tab
  2. Under filters, select only ‘Debt servicing cost – Total’ and ‘Principal and interest received – Loans in default’
  3. Download the excel file and divide the Sum of the ‘Debt servicing cost – Total’ by the sum of the ‘Principal and interest received – Loans in default’. This will give you the sum of your debt collection costs.