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.
Bondora will remind the customer about the pending debt via SMS, email, and automated calls. These reminders are informative and free of charge. The debt amount is calculated according to the full amount that has become collectible in accordance with the law and the terms of the loan agreement. The debt amount consists of the entire loan balance, including interest and management fees on the debt, unpaid invoices, and costs incurred in collecting the debt before the cancellation of the loan agreement(s). The actual debt amount may differ from the final court decision. For the most current information, please contact the bailiff or debt-collection agency that is currently collecting your debt.
Please note: Different countries have different procedures regarding debt management and applied fees. If you're unsure what your country's procedure is, please change this article to your country's language.
DISCLAIMER: The following only applies to loans issued in Estonia