Mintos recovers funds from suspended loan company

Mintos expects to pay lenders € 410,864 (£ 347,468) this week after recovering funds from a loan company it suspended from its platform following late payments.

In April, the European loan market suspended E-Cash from its primary and secondary markets after missing regular settlement payments to investors for seven days. E-Cash also informed Mintos of its intention to end its business operations this month.

At the time of the suspension, € 1,117,096 were being invested in loans issued by E-Cash to 11,516 investors.

Read more: Mintos lawsuit secures investor repayments of € 2.2m

Mintos initiated the collection process and after evaluating the company’s accounts, agreements and respective collection prospects, decided that an out-of-court settlement with E-Cash was the best option.

The platform said this takes into account the very short duration of loans issued by E-Cash, the costs of managing the portfolio, and the time required for the various collection options.

Read more: UK funder joins Mintos loan companies

Mintos said he acted in the best interests of investors to recover as much as possible and after negotiating with E-Cash the recovery rate fell from less than 25 percent on May 11 to 35 percent.

E-Cash has estimated that the process of repaying and collecting debts with its borrowers is complete, which means the lending company can finalize its liquidation and transfer the negotiated amount of € 410,864 to investors on Mintos.

Read more: Mintos loan originators become “less risky”

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