Mintos investors are set to be repaid after a lending company on the alternative finance marketplace stopped transferring borrower money to lenders.
Polish lender Aforti was suspended by Minto in August 2019 after failing to transfer €2.2m (£1.9m) of borrower repayments and not covering its buyback and repurchase pledges.
Mintos launched legal action last year but this was delayed by the pandemic.
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Bailiffs were appointed during the spring and Mintos said it has now recovered the full amount owed.
“We’d like to emphasise that we will always employ the most appropriate recovery process tactics that we believe are in the best interests of investors to result in higher volumes of recovered funds,” Mintos said in a message to investors.
“Legal enforcement is not always the best course of action due to the duration of the process, as shown in the case of Aforti Finance and Aforti Holding.
“However, if proven necessary, we are committed to continuing to act in the best interests of our investors and take as aggressive a measure as necessary.”
Mintos has changed its risk scoring of lending companies since last year.
The Latvia-based firm has introduced risk scores for each of its originators that funds loans through its platform.
The scores range from 10 for a low-risk level to one for high and are reviewed on a quarterly basis.
They are calculated based on an originator’s loanbook quality and performance, how well it recoups bad debts, how it operates buybacks and its co-operation with Mintos.
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