Grupeer launches legal action against loan originators
Grupeer has filed legal action against two of its loan originators and revealed more will follow as it seeks to recoup investor funds.
The Latvia-based peer-to-peer lender suspended activity amid the coronavirus outbreak in March 2020 and is in the process of auditing its portfolio in efforts to stabilise its platform and resume activity.
It revealed that its legal team has filed legal action against originators Pozyczka Pieniedzy and DoZarplati.
“More legal actions will follow soon as eight of our partners have refused to repay the debts and we are currently in the final stages of preparation to file legal action against all of them,” Grupeer said in a blog on its website.
“We continue negotiations with four of our partners, with the help of our legal team to find a solution that would help them to repay their debts, we will provide more information on the progress.”
It split its €46.9m (£40m) loan portfolio into five groups last year.
The first group, accounting for three loan originators worth 0.32 per cent of the portfolio or €165,399, was made up of borrowers that aren’t cooperating, but Grupeer said it will repay these itself at the earliest opportunity.
The second group, made up of 19 per cent of the portfolio or €9.05m, was ready to be repaid as scheduled.
The third group, representing 22 per cent or €10.53m, had financial difficulties and were working on a repayment schedule, while the fourth cohort – worth 14 per cent of €6.38m – were said to be “exploiting the situation” and legal action was being considered.
Grupeer is still working with a fifth group, worth 44 per cent or €20.84m, on their status due to borrowers facing financial difficulties.
Not all investors are convinced by Grupeer’s stabilisation strategy and there are plans to launch legal action so they can recoup their funds.
Grupeer last month revealed that it was seeking a ceasefire with investors so it could chase debts owed.
It revealed it is chasing €10m (£9.03m) of unpaid debt from several loan originators.