Ethical collection

Building a viable financial system for people and society

With operations in six countries in Europe, we have a great responsibility to conduct our operations in an ethical and sustainable manner. Axactor assists in improving customers' cash flow, increase liquidity and minimize risk and help debtors get out of debt through fair debt collection practices and by providing support and advice.

Debtors' have variable degrees of debt and different financial circumstances. As a major player in the market, it is therefore important for us to respect and strive to understand each individual's situation. All debtors shall be treated with integrity and respect, while at the same time keeping our customers' best interests in mind. The creditor, being the customer under third party collection servicing, selects its debt collection agency, whereas the debtor pays the debt collection expenses. The debtor is responsible for his/her payment delay, but the consequences must not be unreasonable. Through our operations policy, applied across our operations in all countries, we ensure the highest ethical standards and principles of good collection practices.

Axactor seeks to find sustainable solutions for customers and debtors

Axactor will, among others, always ensure that the process does not cause unreasonable consequences or unnecessary inconvenience to the debtor. Collection shall only be conducted on obsolete undisputed debt, guidance shall be provided, phone collection shall not be performed at inconvenient hours and all contacts replied within given deadlines.

Our case handlers shall always be tactful, never insulting and not put on unethical pressure to achieve payment but seek to find a good solution by for example offering payment plans. The debtor's right to privacy must always be respected. Information provided shall be correct and not misleading about the consequences of neglecting to pay or about other matters that are important to the debtor. Axactor shall provide information and advice to debtors to prevent payment problems from becoming more serious. We have policies and guidelines for good debt collection practices to ensure the fair treatment of debtors.

Extensive training and awareness campaigns to all employees within operations

To ensure compliance with good debt collection standards, training and awareness campaigns are available to all our employees. It is key that case handlers have a solid understanding of debt collection regulations and each individual debtor’s situation.

Calls shall preferably be taped to ensure quality and security. Many employees within our operations are already certified and we encourage employees to get certified. Experienced personnel conduct reviews and give advice to ensure compliance and quality. A debtor satisfaction survey shall be an integrated part of the call center activities.

Axactor shall have a complaint process in each country. This will be implemented in all countries during 2023 where it is not already in place. All complaints shall be handled in accordance with the procedure; investigated, answered, errors (if any) corrected, reported and filed. Axactor’s customer conducts regular reviews to ensure that Axactor is in compliance.

Our leaders shall be measured not only on financial results, but also the compliance to good debt collection practices.

We operate in a strictly regulated market

Debt collection is, in most countries in which Axactor operates, strictly regulated through specific debt collection laws that require a license to operate. Our operation are supervised by the authorities.

Spain has no debt recovery act or license requirement as such, but follows the clear branch guidelines through the branch association ANGECO (member of FENCA). With the new NPL Directive this may change. Axactor are, in all countries, also following other laws such as enforcements laws and data privacy laws.

Responsible selection of customers and portfolios

At Axactor we value long-term relationships with our customers and we strive to build trust and confidence by delivering with passion, professional and sustainable solutions.

Axactor’s core business is collecting unsecured consumer debt mainly from regulated financial institutions. The customers are chosen among others due to the quality of the claims as the customers are operating under strict regulations and supervision from the authorities.

We have clear and appropriate policies and guiding principles for how new customers are approved and contracts are set up. Our processes shall ensure that new customers are satisfactorily evaluated and approved, to ensure compliance, avoid loss of reputation and secure an appropriate quality and service level according to both parties' expectations. Through our "know your customer" procedure we shall conduct appropriate checks to avoid entering into agreements with customers involved in any fraudulent, corruptible, money-laundering or other illegal activities, or coming from a sanctioned country, and to prevent any conflict of interest.

Customers who represent a reputational or compliance risk shall not be accepted as customers of Axactor. However, risks may be mitigated. Axactor has a high focus on mutual contractual obligations including ethics and compliance throughout the value chain. Information on good debt collection practices, requirements to the collection process related to information, transparency, guidance, interest etc. shall be provided to customers to ensure compliance and high quality throughout the process. The process shall be monitored and where weaknesses are discovered, corrective measures shall be implemented. If weaknesses or errors are discovered in the customer’s process, information is provided immediately. All Axactor’s contracts shall contain warranties of compliance with relevant laws and regulations.

Our investment philosophy

Our management shall ensure responsible investments in new portfolios and that we only cooperate with companies sharing good business ethics. No portfolios which include the use of unethical lending terms or aggressive sales methods or are considered unethical for other reasons shall be purchased.