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. Do you have more than one loan? After the last loan contract has been canceled, we call on the collection agency to collect the entire debt.
If the collection agency cannot contact you or you do not pay the outstanding debt despite several collection letters, legal proceedings are the only option to collect the debt. Legal proceedings are handled by the subdistrict court judge. Depending on the ruling, your bank accounts and salary could be seized.
If you acknowledge the claim, but are unable to pay the full amount immediately due to your financial situation, we can look into the options for a payment arrangement. Please contact us for this! We're here to help! Do you have more debts that you cannot pay off? Check the website of the central government for help in resolving payment arrears or debts.
We remind you of the outstanding debt via text message, email and automatic calls. These reminders are informative and free. The past due amount is calculated based on the full amount that has become collectible in accordance with the law and the terms of your loan agreement. The amount of the arrears consists of the full balance of the loan, including interest and management costs on the debt, unpaid invoices and any costs for collecting the debt due to the termination of the loan agreement(s). The current debt amount may differ from the final amount due to the costs of a judicial collection procedure, such as court fees, bailiff costs or other legal costs.