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Danske Bank progresses with remediation of legacy issues

On 22 October 2020, Danske Bank announced the establishment of a central unit tasked with overseeing the remediation of identified legacy issues in a timely, decisive and proactive manner, and we put forward the main issues, which were and still are at different stages of the remediation process.

Danske Bank continues its efforts to remediate the previously communicated legacy issues, in which errors may have led to poor outcomes or losses for our customers and today, we provide an update on our progress with this work.

“The remediation of the identified issues is moving steadily forward, both in the form of direct communication to affected customers and in some cases in the form of compensation. In respect of some of the issues, we are still investigating root causes and impact, as the issues are complex and date back many years. We are determined to correct any mistakes we might have made and to do it as fast as possible, as well as to compensate our customers for any loss they may have had due to the mistakes,” says Peter Rostrup-Nielsen, who heads the central unit.

Relevant authorities have been informed about the issues on an ongoing basis.

Update on significant progress in relation to remediation of legacy issues:
  • Flawed data in debt collection systems: We have reviewed about 78,000 customer cases of the around 106,000 customer cases that were identified as being at risk of overcollection. We have confirmed that about 1,100 customers need to be compensated as a consequence of overcollection. So far, about 550 customers have received compensation averaging nearly DKK 1,100, with total compensation amounting to nearly DKK 600,000. Moreover, we have sent letters to about 1,250 customers who may have been affected by the related so-called “home issue” concerning possible customer losses caused by agency fees on property sales that resulted in a loss. Unfortunately, we have also identified a risk of error in our work to correct flawed data for a limited number of Realkredit Danmark customers, whose cases may already have been recalculated and in a few instances brought before the courts in Denmark. We have stopped recalculation in this area, and the few cases that are affected by errors and have been submitted to the courts will be withdrawn.

  • Flawed profit/loss data for shares: In the case of retail and commercial customers across the Nordic countries and Luxembourg who may have seen incorrect profit and loss estimates in Danske eBanking or Danske Mobile Banking for example, we have contacted all affected customers. We have also corrected the incorrect tax reporting submitted to the Swedish tax authorities on behalf of about 60 Swedish customers.

  • Delays in refunds of dividend tax: By the end of 2020, we will have refunded 160 of the 5,500 customers, primarily in Denmark, for whom the reclaiming of dividend tax has been delayed, and we continue to review the cases.

  • Incorrect registration of rebates on specific trades: We have now begun contacting the about 3,000 customers who may potentially not have received the agreed rebates on specific FX trades. As previously communicated, this potential error primarily concerns commercial customers across our markets.

  • Discrepancy between investment profile and agreement: As communicated on 11 December, we have informed about 600 retail customers across the Nordic region about a discrepancy between their investment profile and their agreement due to an error in manual registrations. In addition, we have contacted about 1,000 of a further 1,900 customers, who also have a mismatch between their investment profile and their agreement due to factors other than incorrect manual registration.

Danske Bank

  • Stefan Singh Kailay

    Head of Press Relations, Danske Bank

    Phone: + 45 45 14 14 00

Journalists are also welcome to contact our Press Office by phone +45 45 14 14 00.