Capital Service, a lending company in Poland, has entered a creditor protection framework under the “Covid Shield Legislation 4.0”. You can see the official legislation act here (in Polish only). “Covid Shield Legislation 4.0” is a recently introduced project by the Sejm, the bicameral parliament of Poland.
In accordance with the “Covid Shield Legislation 4.0”, Capital Service has received approval from the Polish authorities to defer the borrowers’ repayment transfers to investors on Mintos while continuing its business operation. Capital Service has now stopped all such transfers.
The company is now obliged to present a repayment plan to investors on Mintos with information on when it plans to resume the borrowers’ repayments transfers. Capital Service must present the plan within four months.
Mintos has discussed with Capital Service for them to share the proposed repayment plan for investors on Mintos sooner – in the next 3 weeks. After seeing the proposed repayment plan and deciding if that is in the best interest of Mintos investors, we will share information on the next steps. As an alternative strategy, Mintos is considering legal action in Latvia against Capital Service, since agreements between Capital Service and Mintos, as well as respective assignment agreements with investors on Mintos, are governed by Latvian law.
About Capital Service
Capital Service S.A. is a lending company from Poland. It was founded in 1999 and together with its four subsidiaries created Capital Service Capital Group (a group founded in 2015). The group carries out its lending activity in Poland and offers unsecured payday loans and installment loans to individual customers. The current amount of Capital Service loans outstanding on Mintos is € 9 668 594. There are 50 110 investors with active investments in Capital Service S.A. loans, with the average investment per investor being € 192. The current amount of pending payments is € 9 333 030.
More Capital Service updates will follow as soon as we have further information.