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) in 2005 to which our systems were not adapted.
Our ongoing investigation of the issue concerning reminder fees in Denmark has identified that the issue also includes administration fees called ”Ekspeditionsgebyr” in Danish and a fee related to the American Express credit card. Administration fees have not been charged since 2010, and the American Express fee has not been charged since 2013.
We are currently reviewing all reminder fees that we have charged in Denmark since 2005 – this concerns about 520,000 customers, whereas , 418,000 customers have received compensation. Of these, approx. 277,000 customers have received less than DKK 10, while the remaining approx. 141,000 customers on average have received DKK 56.
We have identified a similar issue in Realkredit Danmark. Our initial estimate is that 20,000-40,000 customers may be affected by this issue of wrongful charging of interest on reminder fees or too many reminder fees.
Also in Norway, we have identified a similar issue, where up to 184,000 customers may be affected. 123,000 of these customers have received compensation or been requested account information. Due to differences in Danish and Norwegian legislation, Danske Bank in Norway will repay the rightfully charged fees in addition to the wrongfully charged interest.
The issues regarding the wrongful charging of interest on reminder fees also apply to Asset Finance Denmark (Nordania Leasing) and Asset Finance Norway.
We have paused charging new reminder fees in Denmark as well as the charging of interest on new reminder fees in Norway – and will ensure that all potentially affected customers in both countries are informed of the issue as quickly as possible.