Important updates on investment charts and their displaying
Dear Investors,
We would like to inform you about important updates regarding the management of terminated credit agreements and the display of your investment schedules.
How it was previously:
Until now, when a credit agreement was terminated, all future payments, including interest that would be calculated until the end of the schedule, were displayed in the investment schedule. This was not accurate in cases where we took legal action due to the borrower's delayed payments. Although the claims were based on the consumer credit agreements signed with the borrowers, court rulings on interest have varied. Courts consistently award the entire unpaid loan amount, but only in some cases do they award the full interest according to the payment schedule, regardless of the actual repayment date. In some cases, courts only award a portion of the lost income that corresponds to the interest stipulated in the agreement, calculated from the termination date until the loan is fully repaid, but no longer than the original loan term. The long-standing functionality of the investment schedules did not allow adjustments to the displayed amounts, even when the borrower repaid the loan either earlier or later than initially scheduled after the court ruling.
Due to these discrepancies, as the peer-to-peer lending platform operator, we made the decision to compensate for the difference from our own funds to maintain the accuracy of the schedules and reflect court decisions. This way, investors received a return that was not awarded by the court. However, this was a temporary solution while other important projects, which generated higher returns for the company, were being implemented, allowing us to cover these losses.
How it will be now:
Now, when a credit agreement is terminated, your investment schedule will be updated automatically. Instead of showing future payments separately, the schedule will display a single consolidated line.
The schedule will also reflect the interest in two parts:
1. Interest until the termination date – this interest will be included in the schedule and allocated accordingly, visible to all investors.
2. Interest after the termination – also known as lost income. This amount will be claimed in court but will not be shown in the schedule until a court ruling is made. If the court awards the full amount regardless of the actual repayment date, this amount will be displayed immediately in the schedule. In other cases, where interest is awarded based on the actual repayment timeline, the schedule will be updated daily to reflect the exact accrued interest up to that date.
These updates will ensure greater accuracy in your investment schedules. Additionally, you will now see clear information about the loan status, court-awarded amounts, and settlements reached through peace agreements.
What investors will see in the new schedule:
After the termination of a credit agreement, your schedule will show a single line that reflects:
- The remaining unpaid loan amount.
- Interest accrued until the termination date.
- Interest after termination (lost income).
If you have any questions or would like more information about the recovery process, our customer service team is ready to assist you. Please note: if you have any questions, feedback, or suggestions, feel free to email us at [email protected]
Thank you for your understanding and cooperation.
Sincerely,
The NEO Finance Team
