Status update: next steps regarding repayments to the investors

Dear investors,

We would like to update you about current status with the repayments and debt collection processes.

As you already know, since April Grupeer stopped the company’s economic activity – we stopped to accept new investments to focus on the priority – to fulfil liabilities towards existing investors. We hoped that the resuming of economic activity will take place sooner, but it is directly affected by the low share of submitted KYC questionnaires. From all active investors approximately, half has submitted and verified updated KYC questionnaires, it still creates difficulties to reopen bank accounts and to resume the economic activity of the company.

We have created a solution to fulfil liabilities towards the investors who have submitted and verified their questionnaires. 

Grupeer will ensure repayments in collaboration with our debt collection partner Recollecta, Reg.Nr. 40203255274. It is a highly professional legal team, which included legal and financial expertise. It will allow ensuring transparency when it comes to repayments, we will transfer the right of claims and funds to the attorneys of law.

Additional actions from the investors are not required, as concluded agreements between Grupeer and investors allow us to engage Recollecta to enforce claims of investors against third parties. The company will administer incoming payments from the loan originators and repayments to the investors as per the schedule, as well as manage debt collection processes.

Within the next few days, we will inform loan originators about the process, as well as send them banking details where they can transfer their amount due, and then Recollecta will follow the process as described below.

The process will be carried out as follows:

Loan originator group Loan originator Repayment process Administration fee
1. Ready to pay, require banking details Cash-U Finance/Finsputnik
Saules kredīts/ Finsputnik
Pozyczka Pieniedzy/ Finsputnik
Nord CardCredito/ Finsputnik
DoZarplati/ Finsputnik
DoZarplati
e Mkopo/Finsputnik
A24
FinanceDyninno
Fintech Holding (EcoFinance)
IbanCar World/Finsputnik
StickCredit/Finsputnik
As soon as loan originator transfers Recollecta the amount due, within 5 banking days Recollecta ensures payment the investors according to the payment schedule (amount due according to the information in the investors’ cabinet).Any payments will be carried out to the investors who have completed the KYC process. 0.5%

Grupeer will cover all fees behalf of the investors

2. Ready to pay, extended schedule  Finsputnik/Platforma
Monify
Cube Funder
Recollecta negotiates and finalizes the repayment schedule.

Repayments will be carried out 5 banking days after Recollecta receives the amount due.

1.5%

Grupeer will cover all fees behalf of the investors

3. Debt collection Finsputnik/Lime Loans South Africa
Right Choice Finance
Finsputnik/Lion lender,
Finsputnik/ Monetria,
Finsputnik/Epic cash,
Finsputnik/Planeta Cash,
Finsputnik/ Mikrokasa
Primo Invest
Legal action launched against: Primo, Lime Loans South Africa

Expropriation of the assets – Finsputnik 

5% from collected amounts.

*The companies might change their status depending on their financial situation.

In general terms, the scope of engagement of Recollecta can be characterized as follows:

  • Simple cases, where transfer of outstanding debts will require a simple notice or similar activity not related to litigation. 
  • Cases of medium complexity, which will require search for debtors/debtors’ officers, negotiation of settlement or similar arrangements to transfer funds to Grupeer’s clients, restructuring of the debtors’ assets and other related activities. This group of services does not include active litigation.
  • Complex cases involving litigation. These cases will require considerable effort to recover outstanding funds, trial work and search for assets of debtors. Litigation involves filing of a claim, review of the claim (traditionally) at two court levels –court of first instance and court of appeals, review of the legality of the proceedings at the level of the highest court in the relevant country (the cassation proceedings, if applicable), enforcement of judgment (recognition of the judgment, search for debtor’s assets, if necessary). Due to complexity these proceedings may take up to several years. The length of the proceedings vary from country to country. In Latvia, for instance, a regular commercial case takes up to 2 – 3 years to obtain the final verdict. Funds to the investors in such cases can become available only when enforcement of the judgment is complete.

Currently, also the State Revenue Service (SRS) of Latvian Republic has stopped SIA “Grupeer” economic activity, but it will not impact the process of debt collection or repayments.

We intend to resume the full operation of Grupeer as a company and legal entity. We are preparing the company to obtain a license from the local regulator and become part of the regulated finance market. To do so, we continue our work to streamline or AML and risk policies and processes, as well as improve and strengthen our IT platform.

It is our belief, that the aforementioned process is the most viable and sound solution in the current situation as currently Grupeer still faces difficulties to renew operations of the bank accounts, while many loan originators have express readiness to repay owed payments.

If you cannot find an answer to your question here, please check the hot FAQ section or write to our support e-mail. We will answer as soon as we can.

Alla Kisika

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