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Total debt recovery in Norway has clearly increased the most in the Nordic countries in the last year. The number of debt collectors is also increasing the fastest in Norway, where Sweden is following closely.
This is demonstrated 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 in these Nordic countries.
"Since 2015, debt recovery has steadily increased in Norway and Sweden, especially in recent years," said Siv Hjellegjerde Martinsen, CEO of Lindorff.
Lower revenue growth
She explains the collection collection in Norway with two things.
"The increase in the number of business in Norway is mainly due to the fact that more unsecured loans are being allocated to debt collection.Another reason is that household income has been lower, which has been caused by the fall in oil prices.While the price of oil has been dropping in recent years, we are still seeing an increase in payment problems in Norway's most oil-exposed regions, "Martinsen said in a statement. A press release.
Growth is highest in the elderly
Debt collection for debtors aged over 60 has increased by 60% in the last eight years. It's about 40 points higher than among other age groups.
"That's because seniors are becoming more numerous and today's retirees are more accustomed than their predecessors to paying for goods and services. This leads to higher collection costs, says Martinsen.
That Norway has more collections than Sweden, which has twice as many citizens as us, makes no sense.
According to Martinsen, what is worrying is that household debt now exceeds 220% of income.
Debt increases slightly by less than six per cent per year, which means that the debt burden continues to grow, while revenues are expected to increase by 3 per cent this year.
"The level of debt makes households vulnerable to interest rates," Martinsen said.
Consumer Council: – It does not make sense
Last year, the Norwegians had recovered more than eight million dollars in debt and the Swedes about 7.9 million, according to the financial director of the Consumer Council, Jorge B. Jensen.
He is concerned that Norway is at the same time the country with the highest number of cases and total debt.
"That Norway has more debt recoveries than Sweden, which has twice as many citizens as us, does not make sense.It is a good indication that something is wrong in the system. Norwegian collection, because the Norwegians are not so different from our Scandinavian brothers and sisters.
He pointed out that the government with the Ministry of Justice has begun work on the revision of the law on collection, which pleased the Consumer Council.
– The collective agreement was conceived in the eighties and the world has evolved since. We must dare to target major changes in the law because the law does not work for this purpose. When collection fees of up to one dollar can be obtained, it is understood that collection agencies can be well paid.
Many need help
An average month, 34,000 people and 9,000 businesses contact Lindorff to find a solution to a payment problem.
"Every day, we help more than 1,500 people and 400 companies in payment difficulties," said Martinsen.
What can help the beneficiaries settle more quickly is that people with a debt collection problem face difficulties in establishing contact with the collection company or creditor.
"There are different solutions, and debt collection companies and creditors are usually willing to find a workable solution to a problem," Martinsen said.
On the Consumer Council website, you can find out more about how to handle a debt collection complaint.
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