Danske Bank is compensating customers for possible overcollection of debt

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.

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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 are in the process of paying the compensation that has been calculated using the model, and we have notified the majority of all customers entitled to compensation according to our model calculations. With the exception of estate case customers, we have paid or attempted to pay compensation to around 90% of the customers entitled to compensation. We expect to pay compensation to the remaining customers in 2026. 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 will be 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. 

Status of our debt collection

We have restarted our debt collection and are currently implementing our new debt collection system gradually. This means that the system is not processing all cases at present. We have therefore entered into cooperation with our external debt collection partner to the effect that new cases which our own debt collection system is not yet able to process are sold to this partner. This solution will be in place until our new system has been fully implemented. We expect to be able to handle 90% of all newly created cases in our own system in the course of 2026.

Debt transferred for collection at 1 October 2020

The debt owed by the majority of customers whose debts were transferred for debt collection after we initially suspended the debt collection at 1 October 2020 will be set to zero. Accordingly, our debt collection in respect of these customers will not be restarted. This solution has been chosen to ensure clarification as quickly as possible for the customers in respect of whom the debt collection has been suspended since October 2020 and to minimise the risk of repeating past errors when the debt collection in these cases is restarted.

A few case types are not covered by the solution as an alternative solution for these have already been implemented or planned. These types include e.g. corporate cases and cases in which a home is currently provided as collateral.

Customers having made payments on their debts after our debt collection was suspended despite of our recommendation not to do so will be notified directly if they are entitled to compensation.

You are welcome to contact us

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.