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.
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.
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".
We initiate debt collection for the monthly installment due.
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.
Yes, for reminders a contribution towards our expenses will be charged. The reminder fees are listed in our fee overview .
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.
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.
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.
|Defaulted loan amount including costs||CHF 7’500|
|Total for category/rating level||CHF 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).
The calculated solidarity contributions are deducted from the next payment for an investment in the respective loan type and rating level.
Claims from loss certificates can be asserted for 20 years. Depending on its assessment, CG24 will attempt to sell loss certificates or manage them.
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.
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).