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 This resulted in some data errors that unfortunately caused us in some cases to collect debt that was time-barred (out of date) or to collect a larger amount than the customers owed us.
 
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 pay compensation to customers who have paid too much. We naturally repay the amount overcollected, but we also compensate customers for the period during which they should have had the money at their disposal.

To minimise the risk of further instances of overcollection, we have suspended collection for a number of debt collection cases until they have been reviewed and any errors have been corrected. Moreover, no interest accrues for as long as the collection of debt is suspended.


Number of customer cases at risk of overcollection

We are reviewing all customer cases in our debt collection system that may be affected by data errors in our systems. Of these, 108,000 customers are assessed to be at risk of overcollection. We have reviewed around 90,000 of those cases, and of these, 1,500 customers have been found to be entitled to compensation.  

Numbers below updated on 11 May 2021

Up to 108,000 potentially affected customers

Around 90,000 customer cases at risk of overcollection have been reviewed

1,500 customers are entitled to compensation

Timeline

  • April 2021 – Period of impartial investigation extended

    The DFSA and KPMG/Poul Schmith, the impartial reviewer, extend the review period until the end of October 2021 to better align with all the necessary adaptations of systems and processes as well as the investigation of the additional possible errors identified.

  • Feb. 2021 - Response to request from the Consumer Ombudsman 

    On 10 February 2021, we respond to the Consumer Ombudsman’s request for information about Danske Bank’s handling of data flaws in its debt collection systems and use of external debt collection agencies.

    Our response also includes relevant information about specific customer cases as requested by the Consumer Ombudsman.

    Read response
    (The response is available in Danish only).

  • Jan. 2021 – Independent reviewer for impartial investigation is appointed 

    Together with the Danish Financial Supervisory Authority, Danske Bank appoints KPMG and Poul Schmith to conduct an impartial investigation of the measures taken and to be taken by the bank to correct the errors in the bank’s debt collection process and of the bank’s IT systems for debt collection. 

  • Nov. 2020 – Order for an impartial investigation from Danish Financial Supervisory Authority

    The Danish Financial Supervisory Authority orders Danske Bank to arrange for an impartial investigation of the measures taken and to be taken by the bank to correct the errors in the bank’s debt collection process and of the bank’s IT systems for debt collection.

    Read more

  • Oct. 2020 – Danske Bank accounts for how we comply with orders issued by the DFSA

    On 20 October 2020, we provide an account of the measures implemented to ensure compliance with the orders issued by the Danish Financial Supervisory Authority (DFSA).  

    We also inform the DFSA that a total of 28,000 customers have had their debt collection suspended to further minimise the risk of overcollection of debt, while 61,000 customers have been offered to suspend  repayment.

    Read more

  • Sept. 2020 – Orders from the Danish Financial Supervisory Authority 

    On 21 September 2020, we receive four orders from the Danish Financial Supervisory Authority in relation to the data quality issues in our debt collection system.

    Read more

  • Sept. 2020 – Temporary suspension of debt collection for a number of customers

    To further minimise the risk of overcollection of debt, we suspend collection in some 17,000 debt collection cases until they have been reviewed as part of the ongoing efforts to remediate the errors identified in the debt collection system. We also suspend interest accrual on all active debt collection cases unless it has been verified to be correct.

    Read more

  • Sept. 2020 – Full written account of the issue to the DFSA

    We submits its response to the Danish Financial Supervisory Authority’s (DFSA) request for further information about Danske Bank’s handling of the errors found in its debt collection system, which we have been working on since May 2019. 

    The response includes a description of the root causes of the errors identified, the historical knowledge about the data errors, Danske Bank's handling of the errors and the extent of the problem.

    Read response

  • June 2020 – Affected customers receive information and compensation begins  

    We begin informing customers affected by overcollection directly by letter and begin paying compensation. We also publish information about the issue on danskebank.dk

  • May 2019 – Internal review initiated 

    During May 2019, we initiate an extensive analysis of the root causes of the issues with the debt collection system.

    Tasks are initiated to ensure that all aspects of the system flaws are investigated and rectified, in particular with the purpose of identifying all financially affected customers in order to compensate them in full.

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