These are the cases in which more than 60% of the principal amount has been repaid for which reason there is a higher risk that overcollection will take place before the cases are reviewed. The collection will be resumed when each case has been reviewed and potential errors corrected. Furthermore, interest will not accrue while collection is suspended.
As we know that many customers are keen to pay off their debt as fast as possible, collection will continue for the 35,000 customers who have started repayment, but paid less than 60% of the principal amount and the risk of over collection therefore is very low. Despite continued collection, interest will also not accrue in these cases until they have been reviewed.
To provide full flexibility, customers whose repayment has been suspended can choose to continue to repay their debt. Likewise, in cases where collection as a rule continues, customers can choose to suspend payments until recalculation has been made.
“We have already taken a number of initiatives to rectify the errors caused by the data issues in our debt collection system, which unfortunately have existed for many years and have not been dealt with properly in the past. We have also made it clear that all customers will be fully compensated for any overcollection. However, I fully understand if the situation has resulted in uncertainty among our customers. Therefore, we will now suspend the cases with the highest risk of overcollection and offer customers in cases with low risk the same option, while also pausing accrual of interest in cases that have not been reviewed. We are deeply sorry for the errors and the uncertainty this has caused for our customers, and we are doing our best to remedy the situation as quickly as possible,” says CEO of Danske Bank Chris Vogelzang.
The changes will take effect by the end of this month, and all affected customers will be contacted directly.
As previously communicated, all these cases will be reviewed, and customers will be compensated by July 2021. We are committed to ensuring that this, and any related issues identified, are fully remediated.