If the borrower has missed repayments and is not collaborating with October in order to regularize its situation, the project is being transferred to an external recovery agency.
Changing interlocutor adds extra pressure on the borrower and show how serious October is to recover the money of its lenders.
Why does October rely on a collection agency ?
Terms and conditions of the recovery process
If October manages to recover directly the instalments due to lenders, then no recovery fee is charged on the amount recovered.
If our recovery partner manages to recover the instalments due to lenders, then a 14,4% recovery fee (VAT included) is charged to cover the collection costs. According to the loan contract (art. 4 in French and Italian loan contracts, art. 13.4 in Spanish loan contracts and art. 3 in Dutch loan contracts), this cost is charged to the borrower. Nevertheless, if the company is not able to face this cost, the fee is charged on the amount recovered.
If the amount recovered by October or by the recovery agency does not cover the total instalment, October does not collect its monthly management fees.