Ranking of servicing of consumer loans in comparison to other obligations of the borrowers

Loans may have a higher risk of default than loans issued by other lenders to borrowers with similar credit scores. The investment return on the payment claims depends on borrowers fulfilling their payment obligations in a complete and timely manner in accordance with the relevant loan. Borrowers may not view debt obligations arranged through Bondora´s platform with the same perspective as credit obligations arising under more traditional circumstances, such as loans from banks or other financial institutions. If a borrower fails to honor his or her payment obligations on a loan or chooses not to repay them entirely, the investor may not be able to recover some portion of its investment in the loan.

Bondora has put a thorough collection process in place; borrowers are notified well in advance regarding the consequences of not honoring their obligations towards Bondora. In those cases where borrowers fail to live up to responsibilities, legal action is taken at the earliest date permitted by law.

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