What is the debt procedure for active loans?

Debt reminders

Bondora will remind the customer about the upcoming payment date via SMS and email. If we don't receive the payment on time, the customer will be notified of their debt by SMS, email, automated calls and postal letters. Debt notifications will be issued starting from the first day after the debt has occurred. On the 4th day, the debt notice is also sent to the customer by postal mail. The letter will be forwarded to the postal address registered in the customer's Bondora account. Debt management service fees are also added according to the legislation of the country where your loan is issued. You can check the price list here.

Please note: Different countries have different procedures regarding debt management and applied service fees. If you're unsure what your country's procedure is, please change this article to your country's language.

Transmission and publication of debt information in the Credit Information Register

DISCLAIMER: The following only applies to loans issued in Estonia

If the customer does not pay the debt, we will publish their personal data in the Credit information register. A payment default will be published if the debt has lasted for at least 45 days and the amount of the debt, together with interest and default interest in addition to unpaid invoices is at least €30. If there is more than one monthly payment due, the calculation of debt days starts from the day when the earliest monthly payment is due. Monthly payments are not separate receivables, and each monthly payment is not accounted for as a separate liability. You can read more about the loan payments process here.

The customer's payment default is seen by banks, installment payment providers, mobile operators, and other companies that sell goods and services on installment payments. An entry in the Estonian Credit Register is likely to reduce the customer's chances of obtaining a loan and purchasing products or services in installments for many years in the future. The default is marked as over after the debt payment, but it remains visible for another 5 years. You can read more about the Estonian Credit Register here.

If the debt is not paid in full

If the customer does not pay the loan even after repeated reminders and three consecutive monthly payments are partially or fully in arrears, Bondora will be forced to cancel the loan agreement and appeal to the court to recover the entire loan.

Please note: If there is more than one monthly payment in arrears and the customer makes a repayment in an amount that is not sufficient to cover the entire debt, the loan payments will be debited in accordance with § 415 of the Law of Obligations Act (LIA).

If the consumer has made a payment under the credit agreement that is not sufficient to meet all the obligations, which have become due, the payment shall be calculated like this:

1. In the first instance, to cover expenses incurred for the recovery of debt
2. In the second order to cover the principal amount owed
3. in the third order to cover interest
4. in the fourth order to cover other obligations