Recovery

How do we define recovery?

By re­cov­ery, we mean all meas­ures that serve to re­duce pay­ment de­faults or re­duce the cred­it debt. The re­cov­ery pro­cess be­gins when re­mind­ers have not res­ul­ted in the ex­pec­ted pay­ment.

What happens if a borrower does not pay his instalment?

A pay­ment re­mind­er will be sent to the debt­or on the third day after the due date. Af­ter­wards, a first and a second dun­ning let­ter will fol­low if ne­ces­sary.

Will investors be informed about payment irregularities?

We in­form in­vestors about pay­ment delays and the meas­ures that have been ini­ti­ated. The first no­ti­fic­a­tion is giv­en when in­stal­ment col­lec­tion has been in­stig­ated. In ad­di­tion, in­vestors can find out about delayed pay­ments in the In­vestor Cock­pit un­der the menu item "In­vest­ments".

What happens if the borrower does not respond to the instalment reminders or does not pay the instalment?

We ini­ti­ate debt col­lec­tion for the monthly in­stall­ment due.

Does CreditGate24 have the right to cancel the credit if the debtor does not pay his instalments?

If a loan is sub­ject to the Fed­er­al Law on Con­sumer Cred­it (loans to private in­di­vidu­als up to CHF 80'000), Cred­it­G­ate24 may only ter­min­ate the loan if the out­stand­ing in­stal­ments reach at least 10% of the loan amount.

For all oth­er loans Cred­it­G­ate24 has the right to ter­min­ate the loan in case of de­fault. We base this de­cision on the best in­terests of our in­vestors.

Are reminders associated with costs for the borrower?

Yes, for re­mind­ers a con­tri­bu­tion to­wards our ex­penses will be charged. The re­mind­er fees are lis­ted in our fee overview

When is a loan described as irrecoverable?

The ir­re­cov­er­ab­il­ity is de­term­in­ed by Cred­it­G­ate24 if all meas­ures taken to re­pay the debt have been un­suc­cess­ful. This is usu­ally the case after re­ceipt of a loss cer­ti­fic­ate.

Does an investor lose his investment if a loan in which he has invested is found to be irrecoverable?

No. In this case the joint and sev­er­al li­ab­il­ity comes in­to ef­fect. All in­vestors who have in­ves­ted in the same type of loan and the same rat­ing level jointly and sev­er­ally as­sume a share of the loss in­curred.

How is the amount of joint and several liability calculated?

The de­faul­ted loan amount (in­clud­ing the costs of leg­al ac­tion) is set in re­la­tion to the total loan amount of the en­tire loan type and rat­ing level. The res­ult­ing per­cent­age is used to cal­cu­late the sol­id­ar­ity premi­um.

Ex­ample:

De­faul­ted loan amount in­clud­ing costsCHF 7’500
Total for cat­egory/rat­ing levelCHF 1'200’000
De­fault in %0.63%

Each in­vestor in the same cred­it cat­egory/rat­ing level is now charged 0.63% of the cap­it­al bal­ance of his in­vest­ment(s).

How are the solidarity contributions charged?

The cal­cu­lated sol­id­ar­ity con­tri­bu­tions are de­duc­ted from the next pay­ment for an in­vest­ment in the re­spect­ive loan type and rat­ing level.

What happens with loss certificates?

Claims from loss cer­ti­fic­ates can be as­ser­ted for 20 years. De­pend­ing on its as­sess­ment, CG24 will at­tempt to sell loss cer­ti­fic­ates or man­age them.

What happens to any proceeds from loss certificates?

These are re­im­bursed to the in­vestors in pro­por­tion to the sol­id­ar­ity con­tri­bu­tions made at the time. If the amounts are min­im­al, the amount is trans­ferred to a char­it­able in­sti­tu­tion.

Who is liable in the default of a loan in case of pending secondary market sales?

The seller is li­able for a de­fault of a loan of the same loan type and rat­ing cat­egory re­lat­ing to the as­set un­der sale un­til the as­set is fully trans­ferred (re­ceipt of the pur­chase price for the as­set by CG24).

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