Therefore, over the past year, Kredinor has been at the forefront of changes to the debt collection industry and sustainable debt collection. In our industry, it is a paradox that the more fees, charges, and interest customers have added to their debt, the more income debt collection companies generate. In other words, there are conflicting interests between debt collection companies and customers. This can’t continue.
We have embarked on a journey towards more sustainable debt collection. Kredinor has, among other things, saved customers significant costs by implementing new rules for notifying them about increased fees and charges. When customers hurry to pay, they save money. This leads to reduced income for us, but we still believe it is the right thing to do.
Similarly, we have removed fees when the bill is divided into multiple installments. This change is another example of choosing the sustainable path, even though it results in lower income for us. The positive aspect is that customers save money and can use it to repay the actual debt.
So far, we have focused on the customer, i.e., the hundreds of thousands of Norwegians who owe money. The next step is to discuss the role of those who purchase services from debt collection companies, namely our clients, which include banks, energy companies, municipalities, and retailers. They should also be involved in discussing the sustainable way forward. Our clients can’t indifferent to the question of who will assist their customers when they are in trouble. The work we do is, in many ways, on behalf of our clients, so it is only fitting that our clients are genuinely interested in the actual practices regarding those who have defaulted on their debts.
Finally, it is worth noting that debt collection plays a vital role in the Norwegian economy. When you borrow money or purchase a product, it must be paid for. This is a fundamental part of our societal model, and the economy will suffer if we cannot rely on it. Therefore, we need robust debt collection companies that can be profitable for both the company and society. But in our eagerness to pursue claims, both our industry and our clients have to a large extent lost sight of our social responsibility.
In the future, we should collectively examine how we can change in order to conduct debt collection in a more sustainable manner. Kredinor has begun this journey, and we hope that as many of our customers, clients and partners as possible will join us.