Wednesday , April 21 2021

New analysis shows: Norway has the highest collection revenue in the Nordic region



The total debt collection in Norway clearly increased the majority among the Nordic countries last year. The number of debt collectors is also growing faster in Norway, where Sweden is following closely.

This is evidenced by the recent analysis of the Nordic Debt Collection, recently published by the collection companies Intrum and Lindorff.

This is the first time that an analysis is done by the debt collection market among these Nordic countries.

"Since 2015 we have seen a steady rise in debt collection in Norway and Sweden, especially over the past year," said Siv Hjellegjerde Martinsen, CEO of Lindorff.

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Lower income growth

She explains the collection collection in Norway with two things.

"The increase in cases in Norway is mainly a consequence of the fact that more unsecured debt is earmarked for debt collection, while the family income was lower as a result of falling oil prices. some years since the oil price fell, we still see an increase in payment problems in regions of Norway that are most exposed to the oil industry, "Martinsen said in a statement.

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Higher growth among the elderly

Debt collection among debtors over 60 years has increased by 60% in the last eight years. That's about 40 percentage points more than other age groups.

"This is because older people are getting more, and today's retirees are more accustomed to paying for goods and services with credit than their predecessors, which leads to higher billing rates, Martinsen says.

That Norway has more collections than Sweden, which has twice as many citizens as us, does not make sense.

What is troubling, according to Martinsen, is that household debt now exceeds 220% of income.

Debt rises slightly less than 6% a year, which means that the debt burden continues to grow, as revenues are expected to grow 3% this year.

"The level of debt makes families vulnerable to interest rates," says Martinsen.

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Consumer Council: – Does not make sense

Last year, the Norwegians had more than 8.6 million debt collections, while the Swedes had about 7.8 million items, according to the Chief Financial Officer of the Consumer Council, Jorge B. Jensen.

He is concerned that Norway is at the same time the country that most increases the number of cases and the total debt.

"That Norway has more debt collection than Sweden, which has twice as many citizens as us, does not make sense. It's a good indication that something is wrong with the Norwegian collection system because the Norwegians are not so different of our Scandinavian brothers and sisters.

He points out that the government of the Ministry of Justice has begun a work of reviewing the law of collection, something that the Council of Consumers is satisfied.

"The collection was designed in the eighties, and the world continues ever since. We must dare to look for great changes in the law, because the law does not work for purpose. When you can get a collection fee of up to one dollar, it is understood that collection agencies can be well paid.

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Many need help

An average month, 34,000 people and 9,000 companies contact Lindorff to find a solution to a payment problem that has occurred.

"On a typical day, we helped over 1500 people and 400 companies with payment difficulties," says Martinsen.

What can help beneficiaries get settled faster is that people who get a debt collection problem are having difficulty contacting the debt collection company or the lender.

"There are several solutions, and debt collection companies and lenders are generally willing to find a viable solution to one thing," says Martinsen.

On the Consumer Council website, you can read more about how to proceed with a claim on debt collection.

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