In 2004, we introduced a new IT system to process debt collection cases. This led to a number of errors in the systems that handle debt subject to late stage collection (debt collection systems). This means that, in some cases, we unfortunately collected more debt than the customers owed us, including time-barred debt.
Since we became aware of the errors, we have been working intensively to find a solution to the problems and to compensate customers from whom we have collected too much. Moreover, as our work has progressed, we have identified additional issues that have increased the scope and complexity of the challenges considerably. We have therefore developed a solution to speed up clarification for the vast majority of our debt collection customers. Consequently, most of the customers with outstanding debt who may be affected by the errors have their debt set to zero and are contacted directly.
This site is also available in Danish
We will pay compensation if we have collected too much
If customers have made payments on their debt and these payments may be affected by the errors in our debt collection systems, we will pay compensation in cases where we consider that we may have collected too much on the debt The compensation is calculated on the basis of a model or an individual review.
We have started to pay the compensation amounts that have been calculated on the basis of the model and notified the vast majority of all customers entitled to compensation on the basis of our model calculations. We expect to pay out compensation to the remaining customers in 2024. However, this will be an ongoing process, and some customers will experience that it takes longer, for instance because their case has a higher level of complexity. Customers entitled to compensation are contacted directly.
How the model that calculates compensation works
We use an automated model to calculate whether some of our customers have been subject to overcollection of debt. We do this because a detailed review of each account would significantly extend the time that customers have to wait for clarification of their debt situation and potential payment of compensation.
If your case was transferred for debt collection after 2004, you can read more about when you may be entitled to compensation according to the model and, if so, how the compensation has been calculated, by following this link: Model for calculating compensation – cases after 2004.
If your case was transferred for debt collection before 2004, you can read more here: Model for calculating compensation – cases before 2004.
We are carrying out individual reviews of some cases
In special cases and in some of the complex cases, we perform an individual review of the customer’s case. We also perform an individual review in cases where the compensation amount has been calculated using the automated model and the customer subsequently requests an individual review of the case. In an individual review, we use the information that we have available to us to reconstruct how the customer’s case was processed, and the individual customer’s debt is then recalculated.
You can read more about an individual review here: Individual review of cases.
Overview of errors in our debt collection systems
Originally, we identified four root causes of errors in our debt collection systems, but as our investigations have progressed, we have identified a large number of other issues that may also have affected customer debt collection cases.
To see an overview of the errors in our systems, please follow this link: Overview of errors in our debt collection systems. The overview lists the errors that are handled by the calculation model and also lists the errors that are not covered by the calculation model.
Collection of debt transferred for debt collection as from 1 October 2020 to be resumed
We will resume the collection of debt from customers with debt transferred for debt collection after we initially suspended our debt collection on 1 October 2020, and these customers are thus not covered by the solution. The collection of debt has been suspended in these cases, and interest will still not accrue on the debt until collection is resumed in the individual case. Paused customers have been informed and will be contacted again once we resume collection of their debt.
Even though debt collection has been temporarily suspended, we perform a manual review of the individual case to ensure that the debt is not affected by errors. Read more about the manual review and see an overview of the errors in our debt collection systems that are covered by this review.
We will gradually resume the debt collection. As previously announced, we have entered into a debt collection cooperation with the Lowell debt collection agency, and the transfer of customer cases to Lowell will thus take place gradually.
You are welcome to contact us – and you can report any additional financial loss
If you have any questions about our handling of your case, please write to us at inkassosag@danskebank.dk or call us on +45 55 85 03 68. You may also submit a compensation claim if you believe that you have suffered an indirect loss as a result of errors in your case. Read more here.
