Adam owes the collection agency at least NOK 1,228,886. Every day the debt has increased by up to NOK 300 in interest alone. news does not use his correct name. He is in his thirties, has several small children and feels great shame about the debt. Five years ago, he gave his bank card to what he thought was a friend who would help him get a loan. – I was very ill and thought I was going to die. I wanted to leave a flat to my wife and children. I was in a desperate situation, says Adam to news. He and 11 others are now waiting for fraud accused Shakeel Muzaffar to appear in court. Shakeel was wanted internationally and news found him in Romania. Then Shakeel said that he has not deceived anyone. The police have still not arrested him and the trial has been postponed. In the meantime, Adam’s debt has changed hands. The banks have sold the debt to the debt collection industry. – It broke a whole family. After I had been in and out of hospital, I tried to call all the debt collection companies in Norway to find out who had bought the debt. I gave up. It was impossible to get an overview, he says. Adam feels guilty because he trusted Shakeel: – I gave away the code tag. I feel I have received enough punishment by having that debt on my neck. Photo: Patrick da Silva Sæther / news Retains interest and fees The Norwegian Financial Supervisory Authority underlines that the debt collection agency has a responsibility in the type of cases that Adam says. – If someone who owes money believes they have been defrauded, this is something that must be taken up with the bank and the police. In such cases, the debt collection agency must stop collection, replies section manager Jo Gjedrem. Finanstilsynet, through section manager Jo Gjedrem, clarifies that the banks can only collect legitimate claims. Photo: Kimm Saatvedt A credit check carried out by news, with permission from Adam, shows that ten different companies have bought up the debt directly, or have taken on the debt on behalf of others. On the debt, Adam receives interest of up to NOK 300 a day, and in addition there are various small fees. The company can also demand up to NOK 12,600 extra, a so-called “collection fee”, in cases where the debt is over NOK 250,000. In 99 out of 100 cases, the debt collection agency chooses the highest rate, according to the Consumer Council. In total, Adam’s debt should have risen over NOK 500,000 since 2017. Finance Norway, which organizes the debt collection agency, believes the fees are at the right level: – The fees are low when the cases are resolved quickly. Then it is naturally the case that it costs more to follow a case over a long period of time, it becomes more complex. Therefore, the fees also increase, says director Eddy Kjær. Sit back with millions The five largest debt collection companies in Norway alone had a turnover of NOK 2.6 billion in 2021 – and were left with just over NOK 400 million. All five of these companies now demand money from Adam. They wrote to news that they would like to be in dialogue with debt victims who cannot pay. – The debt collection industry follows a very strict set of regulations in this collection and the debt collection industry encourages dialogue along the way to find solutions where possible, says Kjær in Finans Norge. Making demands on the government The Debt Collection Act came into being in 1988, and a process for a new law started four years ago. Per-Willy Amundsen (Frp), who is head of the justice committee, is now demanding that the government clean up. – It is totally unreasonable that people who are exposed to crimes such as fraud and ID theft should have their burdens added to the burden by companies that are looking to make a lot of money, says Amundsen. He is worried because he thinks many more people than Adam will have problems paying fixed expenses in the future, and that they will then experience debt collection claims with fees and interest. Per-Willy Amundsen (Frp) is a parliamentary representative and head of the Justice Committee at the Storting. Photo: Dan Henrik Klausen – Many people will end up in a state of incapacity, unfortunately, and come to experience debt collection companies that are quite rude and brutal with the fees they operate with. He believes the Government is way overdue in delivering a new debt collection act. – Firstly, some requirements must be made to those who collect money from persons who are exposed to crime, then the fees must be reduced. It is not intended that this should be an industry that has super profits when people get big debt problems. State Secretary Hans-Petter Aasen in the Ministry of Justice says the Government will prioritize the new law Amundsen asks for: – There is a lot of legislative work going on in the ministry. We will complete this as quickly as possible. In this work, it is important to both look after people who are in a very demanding financial situation, and to ensure that you have to fulfill the claims you have incurred, says Aasen. ALSO READ:
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Debt collection companies demand hundreds of thousands of kroner from fraud victims – news Dokumentar
