What is Bondora’s 3-step Collection & Recovery Process?

While we do everything we can to ensure all borrowers will make their repayments, they may, unfortunately, fall behind with their monthly commitments from time to time. This can be for many reasons, like losing their job or a significant change in their circumstances.

When this happens, we have a precise 3-step collection and recovery process where the bottom line is to secure the maximum amount of cash possible owed to an investor. We aim to reach step 3 as soon as possible because the Bailiff has the right to freeze the debtor’s assets and accounts to cover the payments owed.

 Below, we break it down for you step by step:

 Please note that all timelines referenced below can vary significantly between different borrowers, country and amount of debt outstanding and should only be used as estimates.

1. In-house collection – 1-120 days overdue

Regular reminders are sent to the borrower, and information is passed to debt registries. 

From the 1st day in debt until 120 days overdue, the collection process is handled in-house. Throughout this stage, the borrower receives reminders through email, text, postal letters, and automated calls, asking them to take action immediately. Meanwhile, we pass their information on to debt registries, who also try to contact the borrower.

2. Default & Court – 120+ days overdue

Details passed to court, and a claim is automatically filed via the European payment order.

 When the amount overdue is larger than 3 monthly payments, the loan is classed as in default*. Most commonly, the claim is filed via a European payment order. In the best-case scenario, the process takes a minimum of 4 months until a verdict is reached.

 *Bondora has the right to cancel the loan agreement and demand the borrower to fulfill all his/her liabilities. If the overdue amount is equal to or more than 3 monthly payments, the loan is classed as in default, after which the payment schedule ends.

3. Bailiff – 200+ days overdue

The Bailiff aims to retrieve payments owed from the borrower’s income and assets.

Once the court makes a favorable decision, the case is handed over to a local bailiff. The duration of the recovery process depends on the income and assets of the borrower.