Bondora has reported an increase in the number of loans recovered and the amount of cash recovered from missed payments over the month of August.
The European peer-to-peer lending platform said that there was a 2.4 per cent month-on-month increase in recoveries, with 74,261 missed payments recovered in August.
Bondora said that the amount of cash recovered last month came in just over the €1m (£858,000) mark, representing a 15.3 per cent increase from July.
The average missed payment recovery was €13.74 compared to €12.20 the month before.
Bondora outlined its recovery process into four stages. The first is in-house collections, whereby it sends regular reminders to the borrower, followed by default and court, whereby it prepares for a civil claim and a debt collection agency is servicing the loan.
The third stage is bailiff collections, where Bondora hands over the case to a local bailiff who works to retrieve the payments owed from the borrower’s income and assets.
The final stage is ‘rare cases’, which could apply when a borrower has died, or a criminal investigation or bankruptcy process is underway.
Bondora said that August’s increased recoveries were led mainly by bailiff collections, which saw a 19.7 per cent rise, and rare case recoveries, where 62.1 per cent more funds were recovered.
In contrast, there was a negligible amount of cash recovered from the in-house collection stage, Bondora said.
“The end of summer brought with it substantial numbers from Bondora recoveries,” the platform said in a blog on its website.
“The number of recovered missed loan payments grew by 2.4 per cent, while the amount of cash recovered grew an even more impressive 15.3 per cent. The Bondora team did a phenomenal job recovering missed payments for Finnish originations, whose recovery rate increased for all missed payments dating back to 2014.”