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. 

Legal proceedings

·   We will forward the application for an urgent payment order to the court: If the debtor acknowledges the claim but is unable to pay the full amount immediately due to his/her financial situation, the parties have the right to enter into a judicial payment schedule.

·   Judicial payment schedule: If a payment schedule is decided, the court will terminate the proceedings by agreement of the parties and confirm it with a payment order. The decision on the payment order confirms the new payment schedule in accordance with § 489 (2) of the Code of Civil Procedure (CCP). If you want to enter a payment schedule, you must notify the court in writing.

·   Bailiff: If the parties do not reach a compromise, and the court pronounces the judgment, or if the debtor does not comply with the payment schedule approved by the court, the judgment is enforced. Depending on the court's decision, we also agree to enter into a new payment schedule through a bailiff. The debtor must submit a statement directly to the bailiff, who oversees his/her case. If the debtor sticks to the schedule, his/her bank accounts and salary will not be seized.

What happens when my debt has been forwarded to a bailiff?

After the court has released their judgment and the debt has been forwarded to a bailiff, Bondora will do the following:

·   Initiation of enforcement proceedings: Once the bailiff has received an application for enforcement from the claimant (Bondora), he/she starts the enforcement proceedings. The debtor receives the enforcement order, the enforcement notice, and the bailiff's decision on the bailiff's fee by post. The debtor is given a period of voluntary payment in the enforcement notice, usually 10 days, but can be up to a maximum of 90 days, depending on the enforcement order.

·   Payment schedule via executor: Upon receipt of the enforcement notice, the debtor has the right to apply to a bailiff and submit an application for payment of the debt, based on a payment schedule. The bailiff then asks Bondora to agree to a payment schedule with the debtor on his/her terms. The debtor must fill in a payment schedule application form. The debtor fills in the following: Debt payment in monthly installments, the date of the monthly payment, personal data, current account, dependents, existing liabilities, income, and request for the release from their bank account or salary. The debtor must submit a six-month bank account statement (in pdf format) and documents proving income, along with the payment schedule form.

·   The debt has not been paid in full. There is no agreement to pay the debt: If the enforcement order is not completed within the time limit for voluntary enforcement and the claimant has not provided a payment schedule, the claim is paid from the debtor's income: monthly salary, salary, statutory maintenance, allowances and benefits (regular and lump sum), movable and immovable property and claims. The rights and obligations, of the debtor, the claimant, and the bailiff, as well as the procedure for enforcement of the enforcement order, are provided in the Code of Enforcement Procedure.

You can find the Estonian bailiff's contacts here.

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.