What is the debt collection procedure for canceled loans?

In the unfortunate case where you have three or more consecutive monthly payments that have not been paid in full, and despite repeated warnings you have not paid back the debt, we'll send you a notification of the cancellation of the loan agreement.

The cancellation of the loan agreement means the entire loan balance, including interest on the debt, unpaid management fees and invoices for add-on services, and costs incurred in collecting the debt, become collectible in accordance with the law and the terms of your loan agreement. If you have more than one loan, we will go to court after the last loan contract has been canceled. 

Judicial and Extrajudicial Procedure

·   A local collection agency will get in touch with you: An attempt will be made to reach a friendly settlement or agreement to settle the unpaid debt of the account holder.

·   Dunning procedure: If an extrajudicial outcome to agree on the payment of the debt is not achieved, the legal route will be pursued to obtain a judicial resolution from the court to settle the unpaid debt of the account holder.

·   Execution lawsuit: After receiving a favorable outcome and positive ruling from the court, the debtor will be contacted again to arrange a payment plan. If the debtor does not acknowledge the court-issued judgment to settle the debt, an enforcement measure will be taken. If the debtor still has not settled the outstanding debt, their bank accounts and salary can be garnished according to the resolution or decree issued by the court handling the case, until the debt is fully settled.

Debt notifications

We will remind you 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 your 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.