What is the debt procedure for canceled loans?
If the client has three or more consecutive monthly payments that have not been paid in full, and despite repeated warnings, has not paid back their debt, we'll notify the client of the cancellation of the loan agreement.
For the customer, cancellation of the loan agreement means the entire loan balance, including interest on the debt, unpaid invoices, and costs incurred in collecting the debt, becomes collectible in accordance with the law and the terms of the loan agreement. If the client has more than one loan, we will go to court after the last loan has been canceled.
DISCLAIMER: The following only applies to loans issued in Estonia
- We will forward the application for an urgent payment order to the court: If the debtor acknowledges the claim but is unable to pay the full amount immediately due to his/her financial situation, the parties have the right to enter into a judicial payment schedule.
- Judicial payment schedule: If a payment schedule is decided, the court will terminate the proceedings by agreement of the parties and confirm it with a payment order. The decision on the payment order confirms the new payment schedule in accordance with § 489 (2) of the Code of Civil Procedure (CCP). If you want to enter a payment schedule, you must notify the court in writing.
- Bailiff: If the parties do not reach a compromise, and the court pronounces the judgment, or if the debtor does not comply with the payment schedule approved by the court, the judgment is enforced. Depending on the court decision, we also agree to enter into a new payment schedule through a bailiff. The debtor must submit a statement directly to the bailiff, who oversees his/her case. If the debtor sticks to the schedule, his/her bank accounts and salary will not be seized.