In 2004, we introduced a new IT system to process debt collection cases. This led to a number of data errors in the debt collection systems that handle debt transferred for collection. 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, we are setting to zero the debt of most of the customers with outstanding debt who may be affected by the errors, and we will contact these customers directly.
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 expect that the vast majority of all customers entitled to compensation on the basis of our model calculations will be notified of this before the end of 2023. Customers entitled to compensation are contacted directly.
How the model that calculates compensation works
We use a data-driven model to calculate whether we may have collected too much debt from some of our customers. We are doing this because a detailed review of each account would mean that customers would have to wait significantly longer for clarification regarding 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 calculation compensation – cases before 2004.
We are carrying out individual reviews of some cases
In special cases and in some of the complex cases, we are carrying out a individual review of the customer’s case. Customers whose compensation has been calculated using the calculation model also have the option of requesting an individual review. 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
Customers with debt transferred for debt collection after we initially suspended our debt collection on 1 October 2020 are not covered by the solution. This means that the outstanding debt of these customers is not set to zero and they are not offered compensation on the basis of either a model calculation or an individual review. Customers have been informed about the status of their own case and are contacted again when we restart debt collection, which is likely to happen during 2023. Interest accrual on the debt and collection of debt payments remain suspended until we have completed our investigations.
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 email@example.com or call us on +45 55 85 03 68. You can also submit a compensation claim if you believe that you have suffered an additional financial loss as a result of errors in your debt collection case. Read more here.