Remediating legacy issues

Being a large Nordic financial institution with more than 22,000 employees and 3.3 million customers, operational issues and errors will unfortunately occur from time to time. It is our commitment to our customers that we work hard to avoid them altogether and to ensure to correct them as soon as we identify them.

However, in our efforts to become a better bank, we have in recent years systematically improved our compliance, risk and control capabilities and processes and sought to foster a management culture under which potential issues are raised and addressed. As a result, a number of legacy issues have been identified in which errors have or may have led to poor outcomes or losses for our customers – for instance the debt collection issue.

We are sorry for any detriment that these issues may have caused to our customers and for not addressing the errors sooner. We are committed to rectifying them and ensuring that any customer of Danske Bank who has suffered a loss due to our errors receives compensation.

A central remediation unit

To ensure these legacy issues are handled consistently, timely and proactively, we established a remediation unit in October 2020. The focus of the unit is to handle legacy issues, which are characterized by having a certain degree of complexity, span over a longer time period and may have led to customer losses.

The purpose of the new unit is also to ensure that our learnings from the issues are collected and applied in the future, and that we communicate transparently and timely to customers and relevant stakeholders.

This site is dedicated to provide updates on the remediation process for the legacy issues that are overseen by our remediation unit – not daily operational issues and errors. The site will be updated on a regular basis.

Our approach to remediating legacy issues


Understand the scope and detriment to customers

Ensure timely communication with customers and inform relevant authorities

Correct any errors as fast as possible and prevent reoccurrence

Compensate customers for losses due to our errors 

Details about legacy issues

The list below only entails legacy issues that have a certain degree of complexity, span over a longer time period and have or may have led to customer losses. 

The remediation of the legacy issues is at different stages. In some cases, the causes and impact are still being investigated, while in others, we have already started compensating affected customers. 
  • Debt collection

    In 2004, we introduced a new IT system to process debt collection cases. This resulted in some data errors that unfortunately caused us in some cases to collect debt that was time-barred (out of date) or to collect a larger amount than the customers owed us. 108,000 customer cases are at risk of overcollection in Denmark.

    In May 2019, a comprehensive investigation was launched and the relevant authorities were notified. Since then, we have been working to understand the causes of the errors and to ensure that we rectify these. We have also been working to ensure that customers who have paid too much receive repayment of their money as well as compensation for the period during which they should have had the money at their disposal.

    Read more

  • Non-forced property sales made via home in which a loss is accepted

    Between 2013 and 2019, it was the practice at Danske Bank to negotiate estate agent fees with all estate agents in Denmark except for the Danske Bank Group’s own estate agency chain home. Customers agreed to the fees in connection with the repayment of their debt. This practice may have resulted in up to 2,000 customers paying too high agency fees to home. 

    Today, we have procedures that ensure that we treat all estate agents equally, including home.

    Read more

  • Interest on reminder fees

    In connection with the analysis of the debt collection issue, we have found that we have wrongfully collected interest on reminder fees. The error arose in connection with an amendment of the Danish Interest Act (Renteloven) to which our systems were not adapted.

    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. 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.

    Read more

  • System error in some mortgages

    In relation to the analysis of the debt collection case, we have found a system error that unfortunately may have caused us to charge incorrect amounts on specific types of mortgage that were established in connection with the purchase of real estate property or that were established in connection with raising a loan on an existing property. We will inform all potentially affected customers as quickly as possible. If customers have been charged incorrect amounts on their mortgages, they will of course be compensated.

    Further information will be updated.

  • Flawed estimates for profit and loss figures

    While our customers have always seen the correct share price and received the correct amounts if they have traded shares, up to 27,000 personal and business customers across the Nordic countries and Luxembourg may have seen flawed estimates for profit and loss in Danske eBanking or Mobile Banking for example, due to shortcomings in an underlying IT system.

    This concerns a limited number of shares that have been available on our trading platforms during the past 10 years.

    Furthermore, around 60 Swedish customers have experienced wrong reporting of tax for a number of shares. We corrected our reporting to the Swedish Tax Agency and stopped displaying profit and loss figures for the potentially affected shares, until we had investigated them further.

    Read more

  • Discrepancy between investment agreement and profile 

    We have identified across the Nordic region, primarily in Denmark, that a number of investment agreements were registered incorrectly, resulting in discrepancies between the customers’ investment agreements and investment profiles. It affects around 600 customers and in some cases, the error dates back to 2007. It may have resulted in customers having achieved a lower or higher return than they would have achieved if the agreement had been registered correctly.

    We are strengthening our controls and updating our processes for how investment agreements are registered to prevent similar errors from occurring again.

    Read more

  • Rebates on foreign exchange trades and international payments

    Across our markets, up to 3,000 customers, primarily businesses, have potentially not received the agreed rebates on foreign exchange trades and foreign exchange in connection with international payments because the rebates were not registered correctly in our system. Our initial investigation show that for some customers the issue dates back to 2009.

    We have tightened our procedures and are implementing an updated IT infrastructure to make sure that this type of error cannot occur again.

    Read more

  • Delays in our tax services

    Processes related to two of the tax services offered to some of our custody account customers have unfortunately been insufficient. 

    One issue relates to delays in paying dividend tax repayments on some US securities to customers in the period from 2015 to 2019. It affects around 2,200 of our customers across the Nordic countries and Luxembourg, the vast majority in Denmark.

    The second issue relates to delays in our tax reclaim service, affecting around 2,900 of our customers, mainly customers holding a custody account in Denmark.

    We have updated our processes to prevent such issues from reoccurring and set up a task forcewho has handled the backlog of outstanding reclaims.

    Read more

  • Infinite loan terms

    For less than 100 customers, the term of their loan have unfortunately become infinite, due to a lack of controls, which we failed to inform them about. In addition, we failed to follow up to ensure that customers had an appropriate repayment profile. The loan term had become infinite because payments did not cover interest accrued after interest rate increase in a period between 2007 and 2012.

    Adjustments were made to ensure none of the affected loans have infinite terms and system changes are implemented, so that if the interest rate changes, we are able to prevent the loan term from extending beyond a certain limit.

    Read more

  • Fees for business customers

    We have identified a number of business customers in Denmark who may have paid credit renewal fees which we did not have a basis for collecting. This was due to an issue in a system implemented in 2015, when we automated fee collection for business customers. We are examining a group of around 2,300 business customers who may be affected and began contacting them in January 2021. All affected customers will of course be compensated. We started paying compensation in April 2021.

    Read more

Updates on legacy issues

Below are our monthly updates on how we are progressing with remediating our legacy issues. If you wish to receive a link to the updates by email, sign up.

  • 11. maj 2021Remediation Update 11 May 2021
  • 06. apr 2021Remediation Update 6 April 2021
  • 02. mar 2021Remediation Update 2 March 2021
  • 01. feb 2021Remediation Update 1 Feb 2021
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