Nordea to undergo independent debt probe
Nordea faces ongoing issues due to errors in its debt collection process and is now required to finance an independent investigation. The Danish Financial Supervisory Authority (Finanstilsynet) has mandated the review to ensure that Nordea has addressed the mistakes leading to years of incorrect debt collection attempts from customers with collection debt. This follows eight directives issued to Nordea in September, some of which have been complied with. The Financial Authority lacks the expertise to fully verify compliance, hence the external review, mirroring actions taken against Danske Bank in 2020 for similar issues. Nordea’s director for personal customers in Denmark, Mads Skovlund, acknowledges the requirement, pledging cooperation with the Authority. Following Nordea’s discovery of the errors, debt collection was paused in May last year. By September, Nordea reported refunding 57 million Danish kroner to 4100 customers due to the flawed collection.