Bondora makes its rules - and brakes its rules

Question: How do you make a small fortune with Bondora?
 

Answer:  You invest a large fortune with them.
 

Well thats what I did.

So please answer the following questions @martha
1. Are this fees indeed going to he bailiff?
2. Why have there been no fees until April?
3. Does bondora mix up all the repayments via 3rd party and pays fees to the DCA or is there a fee for every single loan that is paid by the fees for this very loan?

I've managed to withdraw 96% of my original stake - hope to have the balance by year-end.

Once I'm playing with 'house' money only, I probably won't bother to look at it again for 5 years.

Enough of your comments!

This heated atmosphere is mainly due to decision of independent forum admins to allow Bondora's representative to make PR here! I think that you are probably missing the whole story.. THEY have deleted THEIR OWN forum a banished whole community - which have logically moved here.

If we are not welcomed here, just let us know - by any means I don't want to post on board where I'm unwanted..! And there are other forums about P2P...

Please answer this question:

Is this board here to allow discussion of p2p users or for selling us Bondora products?

This forum is for the entire P2P community, which includes both lenders and platforms (no reason for borrowers not to join the party either). It is free, earns no revenue, and is staffed by volunteers.  The forum rules are simple. Be polite, be constructive, and think very carefully before posting anything that might be considered defamatory or libellous, particularly if you provide no supporting evidence.

Polite, constructive commentary about and criticism of platforms is fine, indeed, it's welcomed.  Simply throwing mud around is not.

Hopefully the above will be adhered to, and this thread can continue on its merry journey.  There has been some interesting and useful discussion, it would be a shame to have to lock it.


RM

There was a time when many of us posted on the Bondora forum and even here with positive comments and suggestions, pointing out things which we felt would discourage investors from joining, with the intention of helping Bondora to attract investment.   Partel used to explain things and address investor concerns directly.

Unfortunately Bondora chose to stop posting on the forums with the result that discussion became increasingly negative as investors disagreed with many of the frequent changes made to the investment process.   Because Bondora lost the trust of many of us they could hardly continue with their forum when it became obvious that only unanswered complaints were being discussed.

They have the same problem here and personally I welcome marthaskirta trying to explain things and joining in the discussions, although it will obviously be difficult to change the negative opinions being posted on the forum.  

Hello! There is a lot of questions. I'll try to answer these in one go. Since I have been answering in FB group already some time now, I add relevant links to FB earlier Q&A sessions also if you may want to take a look. 

In July I published the % of the write-offs done from the delinquents portfolio where write offs have occurred in FB. The % was then on average over the all markets 11,2%. Based on the data as of 28.08.2016 the write-offs done are as follows:

Average Write-Off % 13.1%

Average Write-Off %, Estonia 13,2%

Average Write-Off %, Spain 13,5%

Average Write-Off %, Finland 12,4%

Average Write-Off %, Slovakia 17,9%


I have uploaded the full calculations including the recovered amounts and write off amount to here:
drive.google.com/open?id=0B2Ekj11S8tYJYzBuSDZhRS1yYUE


The % of such write offs are subject to change as we have explained several times in different channels and in our blog (please see related blog post: www.bondora.com/blog/category/collection-and-recovery/). Currently the increase is related to the high amount of court cases filed in August as explained in our blog post: www.bondora.com/blog/performance-recovery-process-august-2016/. Everything that is recovered from the debtor (including any of the court fees, state fees etc and DCA fees that we are able to legally charge to the borrower) will reduce the overall % of the write-off but please keep in mind that it takes time to recover the amount.



What are the write-offs

Write-offs are done on the gross funds recovered from the delinquent loans – no matter of the stage of the specific loans. Write-off reduces the claim you have against the borrower. These write-off consist of success fees paid to DCA, state fees, court fees, lawyers fees in connection to collection. Write-offs are done on the delinquent portfolio level to keep the write-offs as low as possible. If there is no recovery the write-offs are not done. In general – write-offs are done at the same time when the payment is made to your Bondora account. Since the system was implemented at the end of June, there are some exceptions as follows:

1) Write-offs done before implementing the system and starting as of April 2016 are in some cases inserted in one entry whilst the debtor has made several payments. Write-off % is calculated on the several payments made during this period, hence this one write-off appears to be larger than usual;

2) Write-offs done with the next actual payment. The system was not able to write-off the debt for older payments if during the day we did the write-offs for the older payments the specific borrower was not in debt anymore and the write-off was scheduled with the next payment. Now if the borrower made the payment the write-off was calculated based on several repayments but shown only with the latest payment, hence write-off appears to be larger than usual.

These are exceptional cases and most of these you have brought out in here also. In general – write-offs are done together with the payment.

Please see full description of the collection process in here: www.bondora.com/blog/bondoras-servicing-collection-recovery-process/


Why from the investors not from the borrowers?

I copied this from my earlier respond. The collection fees that we or any other lender, agency, court, can charge a borrower are capped by law – regardless if it was written other way around in the loan agreements. Before the legal structure change in 2015 the loan agreements were signed directly between you and borrower. These loan agreements did say that the collection fees will be paid by the borrower. Unfortunately due to the change in legislation it is not legally possible to enforce this clause in full. In addition to this capped amount the legislation prohibited the use of arbitration courts in matters related to consumers, which was the quickest and cheapest way to collect the debt. We thereafter have developed a process that would be as effective as it was before the changes, but it is more expensive than the previous process that we can’t use anymore. We are using local agencies and lawyers in each of our markets, including Slovakia, and they are responsible for enforcing our cases. Without having a local representative the cases tended to get unnoticed for some period of time. We do charge the borrower in the amount that is legally permitted for the collection fees and therefore the deductions are correspondingly smaller. So the fees collected from the borrower reduce the write-off and increase your cash flow.



Validity of the agreements before 2015

This section is copied from one of my previous post. In terms of the validity of such change for the agreements signed before the change in legal structure in 2015, the contractual relationship between you and Bondora was regulated by our Terms of Use. Since the change of the legal structure in addition to Terms of Use the contractual relationship between us is regulated by the Assignment Agreement. Both the Terms of Use and the Assignment Agreement allow us to make the changes in the processes we apply for collection and it is valid also for the agreements signed before such process change. I understand that you do not like changes, but due to different reasons, in our case changes in legislation or effectiveness in processes for example, require companies to change their previous processes and terms that you were already familiar with.



Links to our relevant blog posts and threads

www.bondora.com/blog/bondoras-servicing-collection-recovery-process/, www.bondora.com/blog/performance-recovery-process-august-2016/, www.bondora.com/blog/reporting-of-collection-and-recovery-write-offs/,

www.bondora.com/blog/collection-process-overview/,

www.bondora.com/blog/follow-up-on-the-collection-process-overview-blogpost/

www.facebook.com/groups/191879057647930/permalink/606822286153603/

www.facebook.com/groups/191879057647930/permalink/551625395006626/,

www.facebook.com/groups/191879057647930/permalink/551160675053098/



I hope this is helpful. 

Thank you. 

Kind regards

Martha