Interest on reminder feesIn connection with a major review of our processes and systems, we have found that we have wrongfully charged some customers interest on reminder fees. This happened because we did not adjust our systems to stop interest from being charged on reminder fees when a change was made to the Danish Interest Act in 2005.
We are currently reviewing all reminder fees that we have charged in Denmark since 2005 – this concerns about 400,000 customers. In how many cases interest on reminder fees has been charged is still unclear.
At this stage, our analysis show that half of the customers affected to have paid under DKK 10 in interest on reminder fees. We are still in the process of analysing the issue and have also identified cases with significantly larger amounts.
Customers who have paid interest on reminder fees will of course be reimbursed and will receive compensation for the time that the money should have been at their disposal.
How do I find out if I have paid interest on reminder fees?
We are reviewing all reminder fees that we have charged since 2005. Once we have checked whether you have paid interest on a reminder fee, we will contact you as soon as possible.
What should I do if I know that I have paid interest on a reminder fee?
You do not have to do anything. We will contact all affected customers as soon as possible. We will ensure that all customers will be reimbursed for wrongfully charged interest on reminder fees and that they will receive compensation for the time they should have had the money at their disposal.
How will affected customers be compensated?
Affected customers will be reimbursed for the amount of interest that we wrongfully charged on reminder fees. In addition, affected customers will receive compensation for the time they should have had that money at their disposal. We calculate the compensation amount on the basis of the time that has elapsed between the time the request for payment of the reminder fee was made and the time the reminder fee was actually paid.
How could this happen?
The error happened in connection with a change made to the Danish Interest Act in 2005, following which we did not adjust our system to stop interest from being charged on reminder fees. We identified the unlawful collection of interest on reminder fees during our analysis of our processes and systems in connection with the debt collection issue.
What are you doing to ensure that this error does not recur?
The collection of new reminder fees was stopped in September 2020. In order to ensure that this error does not happen again, our IT system is adjusted so that no interest is charged on reminder fees.