Collection process

Bondora's collection strategy is oriented toward efficiency, time, quality and customer satisfaction. Bondora's philosophy is to strive for successful debt collection by being responsive to borrowers’ changing financial circumstances, though with largely automated standard operating procedures. The ultimate goal is to recover as large a percentage of the planned cash flow as possible while maintaining a strong reputation. Payments are handled via SEPA Credit Transfer or online payment gateways (e.g., Trustly). The standard servicing process is continued until the outstanding balance is recovered or the amount awarded by a court is repaid.

Stage Days from/to payment Process
 Current account -7 Email and text message with upcoming payment details or a SEPA direct debit payment call.
-1 Email with upcoming payment details.
0 Borrower makes a SEPA payment from their bank account to Bondora´s bank account or SEPA direct debit payment arrives. The payment is matched to their account either using a unique reference number the borrower added or the borrower´s IBAN account number.
Delinquent account +1 to +7 Daily email, text message, postal letter and automated calls requesting borrower to take immediate action to repay the debt or to contact us in order to find a solution.
+8 Case handed over to debt collection agents (external, in-house or both in parallel) for collections.
+60 Debt collection agents hand the case back in case they have not been successful in restoring payments. Email notifying the borrower of charge-off and start of legal action if the borrower shall not pay within 2 weeks from the date of notification.
Account default +74 Account is considered in default after it has been overdue for more than 74 days and the amount overdue is larger than two monthly payments. Email notifying the borrower of start of legal action. Borrower details will be published with the local credit bureau.
+75 FINLAND: legal litigation will be started in the local court. The process takes typically 4 months until a verdict is made.
SPAIN and ESTONIA: Case handed back to a local debt collection agency. Debt collection agencies are used in Spain and Estonia first as local courts are considerably less reliable and higher cost than in Finland.
+75 to +165 Debt collection agency attempts to collect the debt and agree on a new payment schedule with the debtor. The monthly payment in the schedule needs to be at least equal to the monthly payment of the original schedule.
+166 to +200 FINLAND: The case is handed over to a local bailiff after a court makes a decision. The speed of recovery will thereafter depend on the income/assets of the debtor and their other debts. Bailiffs have rights to freeze debtor’s assets and accounts and deduct payments from debtor’s bank accounts to cover their debt. Assets can be liquidated, regardless if they were set up as collateral or not, as part of a bankruptcy process.
SPAIN and ESTONIA: In case the DCA is unsuccessful, but potential recovery through a court procedure is high (e.g. customer does not have many debts and has assets) then a court case will be filed with the local court. Court process takes between 4-12 months depending on the local court and debt amount. The case is handed over to a local bailiff after a court makes a decision. The speed of recovery will thereafter depend on the income/assets of the debtor and their other debts. Alternatively in case the success of a court process is low the claim is passed from one DCA to another until payments are recovered.


Check out our webinar video about the collection and recovery process: 

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