Welcome to the fourth post in our monthly overview of the recovery stages. Here, we’ll show you exactly how many loans are in each stage of the recovery process and we will compare how it has changed from month to month.
While we have tried to assign all loans to a specific stage as of the date of the report, the recovery stages are sometimes not promptly updated so individual loans may occasionally fall under incorrect stages.
Where do the figures stand?
Why is this important?
In case you missed our previous post, you might firstly find it useful to check out our 3 step collection and recovery process. This explains everything you need to know about each stage and sub stage you see above. Soon, we aim to improve the view and reporting on your Bondora account so you can see all the information about what stage your loan is at in the recovery process along with a reminder of what happens at each stage.
Over 2,000 Estonian cases currently waiting for a verdict
In Estonia, a total of 2,090 loan cases have been filed and we are waiting for the court to reach a verdict on the payment order. The number is approximately half of this in Finland at 1,060. As a reminder, a payment order is our first interaction with the courts and is a simple, fast and cost-effective process that accounts for the majority of our court cases. If the payment order does not bring any results or if the borrower objects to this, we then file a civil case.
Once the courts have a reached a decision on these cases (and if they are ruled in our favor), then they will move to the bailiff stage where the bailiff will begin to work to generate a cash flow and return payments to investors.
Similarly to last month, there are still a high number of loans that we are preparing to file via a payment order to the local court in Spain. As it stands, we are currently working with a specialist partner in Spain who will aid us in filing the remaining defaulted cases to court. We filed a handful of these cases in January and have been doing the same in February. The speed and frequency of this is expected to increase on weekly basis going forward.
Why is the bailiff stage important?
This is a critical step in the recovery process for a number of reasons, most importantly because the bailiff has the rights to freeze the debtor’s assets and accounts to cover the payments owed. Once successful, this stage is usually where a cash flow is generated and you will start to see payments come in to your Bondora account.
Check in again next month to see how February’s figures weigh up.