Tax minister open to more private debt collection

In an article in Berlingske on February 17, 2020, Minister of Taxation Morten Bødskov declares himself "open to listening to other good proposals on how to reduce the total debt". The minister refers to a specific proposal from tax spokesperson Kathrine Olldag from the Danish Radical Party, who wants to bring private debt collection into play to a greater extent than now: "We need to look at whether there is more we can outsource and send out to private companies and private debt collection".

At Kredinor, we were ready!

Kredinor (now Collectia) was already up and running in the two areas where the Minister of Taxation had so far initiated private debt collection: Kredinor won the Danish National Debt Agency's tender for the collection of Nordic SU debt in mid-2019. Shortly after, more than 20 municipally owned utility companies had already chosen Kredinor as their private debt collection partner when the opportunity opened up on January 1, 2020.

Efforts and focus were very much needed. Since 2005, the debt of Danes and businesses has more than doubled to DKK 123 billion, and even though the Danish National Debt Agency expects to recover DKK 8-10 billion a year, the debt is still enormous. No one should believe that all DKK 123 billion can be recovered, but one thing is certain: If nobody does anything, nothing will happen. Therefore, the political signals are very positive, but attitude requires action!

Technically speaking, there is nothing to prevent virtually all public debt from being sent for private collection, is there? As a private debt collection company, we are subject to both Good Debt Collection Practice, under the supervision of the police and subject to a number of Danish laws. Our efforts are regulated, and the ultimate recovery takes place via the Fogedretten, which is subject to the courts. There is no talk of the Wild West, threats in the twilight, the use of tools for working fingers and whatever else the term "debt collection" may be associated with.

But elephants have to be eaten in small bites, and with the law to recover Nordic SU debts and debts to publicly owned utilities, we have started the meal. The next small dishes could be unpaid municipal parking fees (why should they be treated differently from private individuals?), unpaid media license fees and non-payment of VAT and duties by businesses. All non-sensitive claims that basically just need to be paid into the common coffers. The coffers of all of us.