What happens if a borrower does not pay?

Cashare takes care of reminders and collection on behalf of the investors. If an instalment is not paid, we send reminders in fixed steps:

1. Payment reminder
2. 1st reminder notice 10 days after the due date
3. 2nd reminder notice 20 days after the due date
4. 3rd reminder notice with notice of debt collection proceedings 30 days after the due date, with a payment deadline of 10 days

For bullet loans, we send the final reminder notice earlier, see the fee schedule. If the borrower still does not pay, the entire loan may become due and we will initiate debt collection proceedings. See How do debt collection proceedings work?

Late payment interest: For loans under the Consumer Credit Act (CCA), it is at most the agreed annual percentage rate (Art. 18 para. 3 CCA). For other loans, the rate in the loan contract applies. If the borrower pays the late payment interest, we pass it on to the investors.