What is the debt collection procedure for canceled loans?
If you have monthly installments that are partially or fully unpaid, and despite repeated payment reminders and notices you have not paid your overdue debt, we will terminate the loan agreement(s) in accordance with consumer protection legislation.
Termination of a loan agreement means that the entire outstanding loan principal, together with interest and loan servicing fees, unpaid invoices for additional services, and costs incurred from sending payment reminders, become immediately due and payable. Debt collection will then continue in accordance with applicable law and the terms of the loan agreement. After the loan agreement has been terminated, the debt may be transferred to a debt collection agency.
Legal proceedings
Once your loan agreement has been terminated, we will generally bring the matter before the District Court through a summary debt recovery procedure or submit an application for a European Payment Order to the District Court. We will then await a payment judgment.
If you pay the entire debt directly to Bondora, we will withdraw the debt recovery claim or payment order application from the District Court, and no enforcement measures will be taken against you. After a payment judgment has been issued by the District Court, we will transfer the claim to the Finnish Enforcement Authority for collection. You will then have the opportunity to arrange repayment of the debt through them.
Payment Default Registration and Publication in the Credit Register
A creditor may report a consumer credit default to be recorded in the credit information register when a payment has been overdue for at least 60 days and the debtor has been notified of the delay at least 21 days before the information is reported. Reporting is also subject to the condition that the possibility of such reporting was stated in the original credit agreement and that no new payment plan has been agreed upon for the debt.
Credit information is used in many different decision-making situations, including the granting of loans, opening mobile phone subscriptions, purchases on invoice, renting housing, entering into insurance contracts, and opening credit accounts. A negative credit record may, in many cases, prevent or significantly complicate the conclusion of various agreements.
You can read more about Suomen Asiakastieto here.
Debt notifications
Bondora reminds customers of overdue debts via text message, email, and automated phone calls. The debt amount is calculated based on the full amount that has become due for collection, in accordance with the law and the terms of your loan agreement.
The debt amount consists of the entire loan principal as well as all other overdue charges, including interest, loan administration fees, unpaid invoices, and other costs arising from the collection of the debt. For the most up-to-date information, please contact the court bailiff, enforcement officer, or the debt collection entity currently handling your debt.