After sending an invitation to CBC for out-of-court settlement of their obligations, no payment has been received from the Polish originator to date. We are taking all necessary subsequent legal actions to protect the interests of investors affected by the challenges which occurred with CBC. We are actively cooperating with a Polish law firm regarding the originator’s failure to fulfil its obligations, and we are about to file a claim to the Polish court in order to collect the amounts due. Our team will continue to share up-to-date information on all following measures and actions on our behalf and on the results achieved. Protecting the interests of our investors remains the main focus of our work, and we continue to make all efforts to keep iuvo the best place for your funds.
The legal work on the case is done by the Internal Legal Department of Management Financial Group – a holding which encompasses in its structure leading companies specialized in the field of non-banking financial services in Central and Eastern Europe, and which is the majority owner of iuvo.
CBC has joined the iuvo platform since the beginning of 2019. The crisis following the spread of COVID-19 pandemic has had a serious impact on CBC’s business, that is why CBC’s loans uploaded on the platform were renegotiated in April, providing a 3-month principal grace period. After the expiration of the grace period, CBC ceased to fulfil its main contractual obligations, including: buy-back guarantee activation, transfer of payments from borrowers to the platform, payment of fees to iuvo. As early as the end of July, we took a series of actions to protect the interests of our investors. Iuvo sent an out-of-court invitation for voluntary payment of amounts due and fulfilment of contractual obligations, however such payments were not made within the defined 14 day period after the date of sending the invitation. Offering of CBC loans on the secondary market was suspended. Iuvo continues to use all possible tools to communicate with CBC and alleviate the conditions, considering the difficulties for the business and the current situation, however we continue to give priority to our investors’ interests.
We would like to remind you that iuvo is the P2P platform with the strictest rules for accepting loan originators on its market, and as a result the number of similar cases and their consequences are reduced to a minimum. Iuvo started its activity in 2016, and since then has established itself as a trusted partner to more than 21,000 investors from over 147 countries who have generated investments of more than 130 million euro on the platform. The average annual return that we have brought to our investors is 9.2%. Management Financial Group (MFG) is the majority owner of the platform. MFG is a holding which encompasses in its structure leading companies specialized in the field of non-banking financial services in Central and Eastern Europe. MFG manages a rich portfolio of successful business models in the field of personal loans, financing of micro and small businesses, credit cards, digital business, and other alternative financial models. The holding and its group companies are a responsible employer of more than 7,500 employees and assistants in over 450 offices in Bulgaria, Ukraine, Romania, Poland, and Macedonia, and the global expansion of the holding is currently developing. MFG has long-term ambitions to continue to strengthen its position as a vigorous and well-functioning fintech ecosystem, to develop globally as a reliable provider of financial and technological products and services to the benefit of people.