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 This resulted in some data errors that unfortunately caused us in some cases to collect debt that was time-barred (out of date) or to collect a larger amount than the customers owed us.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 now reviewed all of the 197,000 customer cases in our debt collection systems where there is a risk of overcollection as a result of the original data errors.
We will naturally repay the amount overcollected to the affected customers, but we will also compensate customers for the period during which they should have had the money at their disposal. Moreover, the outstanding debt will be reduced in the vast majority of cases.
During our investigation of the original data errors, we have unfortunately become aware of a number of potential additional issues that we are still investigating. Customers who may be affected by these will be informed on an ongoing basis. We expect that this work may extend into 2022. Only when we have completed our investigations and have corrected the data errors and made corrections to our debt collection systems will we be able to give our customers a final answer about their outstanding debt. So we cannot rule out the possibility that we may not be able to resume debt collection for debt collection customers until 2023.
While we continue to investigate the case, the repayment of debt has been suspended for all cases to minimise the risk of overcollection. Moreover, no interest will accrue until each case has been resolved. Until we have clarity of their outstanding debt again, we have also chosen to withdraw our reports of debt collection customers to the RKI credit reference register, where the amount of the outstanding debt is uncertain. The affected debt collection customers will be informed directly and as soon as possible.
We have also initiated preliminary reviews of the debt collection systems in our other markets. In Finland and Sweden, limited preliminary reviews indicate that issues similar to some of the issues identified in Denmark potentially are also present in Finland and Sweden, albeit in a much smaller scale. We will complete extended analyses of the debt collection systems in Finland and Sweden, and in that way clarify the potential action towards affected customers.
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 now reviewed all of the 197,000 customer cases in our debt collection systems where there is a risk of overcollection as a result of the original data errors.
We will naturally repay the amount overcollected to the affected customers, but we will also compensate customers for the period during which they should have had the money at their disposal. Moreover, the outstanding debt will be reduced in the vast majority of cases.
During our investigation of the original data errors, we have unfortunately become aware of a number of potential additional issues that we are still investigating. Customers who may be affected by these will be informed on an ongoing basis. We expect that this work may extend into 2022. Only when we have completed our investigations and have corrected the data errors and made corrections to our debt collection systems will we be able to give our customers a final answer about their outstanding debt. So we cannot rule out the possibility that we may not be able to resume debt collection for debt collection customers until 2023.
While we continue to investigate the case, the repayment of debt has been suspended for all cases to minimise the risk of overcollection. Moreover, no interest will accrue until each case has been resolved. Until we have clarity of their outstanding debt again, we have also chosen to withdraw our reports of debt collection customers to the RKI credit reference register, where the amount of the outstanding debt is uncertain. The affected debt collection customers will be informed directly and as soon as possible.
We have also initiated preliminary reviews of the debt collection systems in our other markets. In Finland and Sweden, limited preliminary reviews indicate that issues similar to some of the issues identified in Denmark potentially are also present in Finland and Sweden, albeit in a much smaller scale. We will complete extended analyses of the debt collection systems in Finland and Sweden, and in that way clarify the potential action towards affected customers.
