Why your write-off is higher than the current applicable rate?

In general – write-offs are done at the same time when the payment is made to your Bondora account.

Currently there are some exceptions as follows: 

1) Write-offs done before implementing the system and starting as of April 2016 are in some cases inserted in one entry whilst the debtor has made several payments. Write-off % is calculated on the several payments made during this period, hence this one write-off appears to be larger than usual; 

2) Write-offs done with the next actual payment. The system was not able to write-off the debt for older payments if during the day we did the write-offs for the older payments the specific borrower was not in debt anymore and the write-off was scheduled with the next payment. Now if the borrower made the payment the write-off was calculated based on several repayments but shown only with the latest payment, hence write-off appears to be larger than usual;

3) For some cases the rate of the partial write-off is higher because of the wrong order of payment and deductions. The payment was made first to the invoices and the write-off was not triggered for the invoices, hence the system calculated whole write-off to the investors amount, this bug is fixed by now and there should be now issues like this anymore. 

4) The same borrower has several loans. When repayments and write-offs are made then they are divided between all the investors of all loans. This distribution is not 100% equal for all investors for each individual payment due to rounding and settlement order.

5) The borrower made the payment to third party account and the write-off was triggered when the loan was still in the in-house collection status. We assume that the borrowers have gotten the bank account information from previous debt letters, since we do not send or publish any information about third party bank accounts before the respective borrower has given over to third parties.

 

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