All debtors are subject to debt collection processes used by commercial lenders

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The following debt settlement process is automatically started in case the borrower is late with the payments:

  • A 0.2 per cent penalty charge is calculated on the overdue principal for every day the payment is late
  • Official debt reminder and warning letters are sent to the debtor every 7 days by e-mail
  • Official debt warning letter is sent to the debtor once a month by post
  • The debtor’s details are passed to the Official Debt Registry after 38 days
  • After being overdue for more than 60 days the debt and principal balance will become fully overdue, the debtor’s details will be published on isePankur’s website and the debtor will be immediately taken to court
  • The debt is passed over to the court bailiffs who can arrest the debtor’s bank accounts, assets and incomes after a positive court ruling. On average it takes a month to get the court order issued and enforced.

The whole process is automatic and the investor does not have to do anything to collect the debt.. However the investor must keep in mind that in some cases the debt settlement process can take up to years. The investor will earn interest and penalty charges during the whole period.