The Swedish Debt Collectors’ Association (Inkasso) warns that the number of new debt collection cases continues to rise and is now at record levels. They often concern small purchases such as telephone subscriptions or clothes that have not been paid for.
– There could be more than ten million cases this year, says Fredrik Engström, Chairman of Svensk Inkasso.
Between January and July this year, more than 5.6 million debt collection cases were registered – seven percent more than in the same period last year, and most indications are that the increase will continue.
– This is a big increase compared to what it usually looks like… If the trend continues, there could be more than ten million cases this year for the first time, Engström told TT.
Those who do not or cannot pay their bill usually, but not always, receive two reminders before the debt collector arrives, and if the bill is still not paid, the case is often sent to the Swedish Enforcement Authority instead, which in the worst cases can seize wages and other assets.
According to Fredrik Engström, it is the difficult economic situation with price increases, higher rents and high interest rates that has led to more and more people struggling to pay their bills.
Tighter rules for invoice discounting
The amount of debt has not increased, however, and Engström notes that more collection requests are for smaller amounts – 86% of which are less than SEK 5,000 (€440). 76% of claims are finally paid within three months, which is the same level as before.
The debt collection claims are often for trivial items such as telephone subscriptions, clothing bought on account or other internet purchases. Finansinspektionen (the financial inspector) believes that the ease with which people can choose to pay later on an invoice may be to blame.
– It’s quite easy and quick to implement, and you don’t look at whether the consumer has the ability to repay when buying on credit, as you do with loans, for example, says Anna Hult, senior lawyer at Finansinspektionen.
New, stricter EU rules expected to come into force in 2026 could make it more difficult to buy on invoice and lead to stricter credit checks, but it is not yet clear how this would be implemented in Sweden.
