Recovery costs are expenses we have if we need to hire third parties to potentially solve a situation to recover investors’ funds. For example, fees charged by a 3rd party loan servicer, or external legal fees.
Before Mintos incurs any external costs related to recoveries, we carefully consider whether we believe they are in the best interest of investors and can potentially improve recoveries. These external costs might be passed and split among affected investors, depending on the severity of the case, potential resources needed to recover the funds, and the amounts to be recovered. There’s no specific threshold for passing external costs.
Mintos would withhold recovery costs from repayments to investors only in the case of successfully recovering full or partial repayments from loan originators. In any scenario, such compensated cost may not exceed the amounts recovered. Before passing any cost to investors, Mintos will explain what the cost is, why we believe it to be in the best interest of investors, and why Mintos passes the cost to investors upon recovery.