Small debts with big consequences – the debt collection industry must take responsibility
When a debt of just a few hundred kronor leads to enforcement action and a payment remark, something has gone wrong. It’s time for the debt collection industry to step up, to modernize and take responsibility for building solutions that work efficiently and put people first, writes Pernilla Almström, CEO of coeo Sweden.
Swedes’ debts with the Enforcement Authority continue to rise, setting new records year after year. Behind every number is a person at risk of long-term financial and social consequences – often because of relatively small amounts.
Is it really fair that a debt of just a few hundred kronor can so quickly lead to a payment remark? That’s a question we in the debt collection industry need to ask ourselves – and be honest about the answer.
As CEO of coeo – one of Sweden’s leading debt collection companies – I see every day how our industry’s methods affect people’s lives. An application for payment order not only adds extra costs for the consumer but also carries the risk of a credit record – something that can make everyday life much more difficult. Suddenly, getting a mobile subscription, renting a home, or signing an electricity contract becomes a challenge.
In most cases, a collection claim isn’t the result of unwillingness to pay. It often happens because of mistakes or stressful life situations. In early 2025, together with Novus, we conducted coeo’s Debt Collection Report, surveying over 1,000 Swedes about their payment habits and experiences with debt collection agencies.
The report shows that many people experience stress (48%), shame (35%), worry (32%), and even panic (24%) when they receive a debt collection notice – and only 16% reach out for help.
Only 4 in 10 say it’s easy to reach customer service by phone, and 2 in 10 via chat. This underlines the need for clear, empathetic communication and accessible, personalized solutions – ones that reduce conflict, increase repayment rates, and strengthen trust between consumers and companies.
There’s a common belief that anyone who ends up with the Enforcement Authority deserves to be there. But in many cases, it’s simply because the person didn’t have time or opportunity to act – or because the process moved so quickly that there was no room for dialogue. We in the industry have the power to change that.
Just because a case can be sent to the Enforcement Authority doesn’t mean it should be. We need to take responsibility and find smarter, more sustainable solutions — both ethically and commercially. Everyone wins when debt is managed efficiently, but also with humanity.
The problem is that today’s collection processes are often standardized and rigid. Automated reminders, short response times, and a fast track to legal action cause small debts to grow unnecessarily and create avoidable conflicts. With a little more empathy and flexibility, many of these cases could be resolved early on.
At coeo, we’ve chosen a different path. We work with personalized payment plans, digital communication, and modern payment solutions that make it easier for customers to take control of their situation – helping us resolve many cases before they escalate.
The result? Our customer rating is 4.7 out of 5, compared to the industry average of 1.3. That clearly shows there’s a demand for a more empathetic and transparent approach. Consumers appreciate being treated with respect and given the chance to influence their own situation. Meanwhile, our clients see higher recovery rates – and retain their customer relationships.
But we don’t want to be alone in driving this change. The entire industry needs a mindset shift. We need a new business logic – one that doesn’t rely on increasing costs, but on finding solutions that work for all parties: clients, consumers, and collection companies.
It’s absolutely possible to build a win–win–win model – where fewer small debts end up with the Enforcement Authority, where customers get the right support, and where companies see higher repayment rates and stronger relationships.
We have to challenge old structures. Leaving behind the traditional and investing instead in processes that are transparent, solution-oriented, and human. With modern technology, clear communication, and flexible payment options, we can make a real difference.
The debt collection industry has a unique opportunity to contribute to a more sustainable financial ecosystem for both companies and individuals. But it requires that we in the industry are ready to take responsibility – and dare to think differently.
We’ve already started that journey. The question is: Is the rest of the industry ready to follow?
Pernilla Almström
CEO, coeo Sweden