We have received information that various scam messages are circulating in the name of Zolva. Scam messages may look genuine and may contain the Zolva logo. Scam messages have been sent at least by e-mail and demand to pay the debt.

The fraudulent messages have been reported to the police.

If you have received an email that you suspect is a scam, delete it without opening any attachments.

• Do not reply to the message.
• Do not open links or attachments in the message.
• You don’t need to do anything else about it.

If you doubt the authenticity of the message you received, you can check the matter by contacting our customer service at asiakaspalvelu(at)zolva.com.

This message has not been sent by Zolva:

The scam messages were originally reported on 14.11.2023 and the news has been published again today on 21.11.2023 after Zolva received information about the new scam messages.

According to Zolva’s Head of Finance Lauri Kosloff, the cooperation enables visibility to payment behaviour of non-performing receivables on customer specific level and enables analyzes for each customer group. It is important for creditors to understand the quality and performance of their non-performing portfolios. In optimal cooperation with the debt collection agency, the activities are agreed and optimized together and the best time to sell the non-performing receivables is optimized based on performance of the portfolio(s).

In addition, the sales of non-performing portfolios to debt collection agencies are made easier when the credit institution or the invoicing entity has good data, which increases trust between the seller and the buyer and enables good dialogue between the parties.

Dignisia analyzes and refines information almost in real time. It is a value-added service for companies using Zolva’s services.

– The change to the industry’s practices is big, because companies usually only see the customer base that is in debt and how much has been paid. In the future, companies utilizing Zolva’s services will also know how efficiently Zolva’s different collection stages work. Collection should be optimized by considering the cashflow from non-performing receivables and generated costs for collection activities, says Kosloff.

According to him, the Dignisia’s service will especially benefit financial companies and the telecom sector, which have large invoicing volumes and for which cash flow and credit losses play a significant part in their result.

– The data provided by Dignisia enables companies utilizing Zolva’s services to benchmark the effectiveness of the measures and activities of two different debt collection agencies. Then everything is transparent, says the Head of Finance.

Transparency is common goal of Dignisia and Zolva

Dignisia, which operates internationally, has a good understanding of the needs of debt collection industry, as the company’s management has previously worked in various management positions at different debt collection agencies.

One of Dignisia’s most important goals is to bring more transparency to the collection industry through technology. Transparency develops cooperation between debt collection agencies and creditors, brings results and improves the customer experience. In addition, technology gives company management the opportunity to make data driven decisions based on analyzed information.

Dignisia CEO Gustav Terland says that the cooperation between the two companies has started very well. According to the CEO, Dignisia’s customers are utilizing Dignisia’s data, for example, when optimizing receivables management and debt collection activities, managing risk, and developing responsible lending.

– We are an independent operator within debt collection industry and in discussions with the people of Zolva, we understood that they want to achieve the same goals as us. Zolva wanted to offer its customers something new and we can add value throughout Dignisia’s services.

What will change?

1. The order of payment methods presented in online stores
2. The obligation to verify the consumer’s identity with SCA when the consumer buys from an online store with an invoice
3. The interest rate cap on consumer loans will be reduced from the current 20 percent to 15 percent
4. Good lending practice, especially in relation to credit marketing and late payment situations

The order of available payment methods in online stores

In the future, online retailers and payment service companies must present the available payment methods to the consumer in the following order:

1. Payment methods that do not include the possibility of applying for or using credit or deferred payment
2. Payment methods, which may include the possibility to apply for or use credit or deferred payment
3. Payment methods that mean applying for credit, using it or have possibility for deferred payment

According to the government’s proposal (HE 218/2022), payment methods that do not include the possibility to apply for or use credit or receive other payment deferrals typically mean so-called online payments, where the consumer’s account is debited immediately in connection with the purchase, as well as e.g. payments made with debit cards or sports or cultural benefits. If, in connection with the online payment offered by banks, the consumer also has a credit account to choose from, this alone does not lead to the fact that the online payment cannot be considered a payment according to section 1.

The purpose of the law is that in the order in which the payment methods are presented, online bank payments must be presented first, card payments and mobile payments second, and lastly an invoice or various installment payment options.

Verification of the identity of the consumer online

The Consumer Protection Act has previously stipulated that when drawing up a credit agreement, the creditor must verify the consumer’s identity with strong identification.

Some of the operators offering payment services have defined purchases made with an invoice as being excluded from Consumer Protection Act chapter 7 and considered that deferred payment as such is not considered a credit according to Consumer Protection Act chapter 7. According to the view of these operators, the purchases made with the invoice have not formed a credit agreement and thus the creditor has not had the obligation to verify the identity of the consumer through SCA.

Payment service companies have justified their practices, e.g. with various other identification mechanisms, the usability of the services and conversion improvement.

After the change in the Consumer Protection Act on October 1, 2023, the consumer must be identified with SCA whenever the consumer buys online in a way that means deferred payment.

The extension to the identification obligation improves the consumer’s position, the safety of purchasing online, and clarifies the identification practices between different payment methods.

Banks’ strong identification practices, e.g. through applications have developed significantly in recent years. Nowadays, it is difficult to justify the lack of strong identification with usability and conversion improvement.

Changes to the interest rate cap

In the past, an interest ceiling has been applied to consumer loans, which has been limited to 20 percent, including the reference interest rate according to the Interest Rate Act. When the Consumer Protection Act changes on 1 October 2023, the new interest rate ceiling will be the reference interest rate according to the Interest Act plus 15 percentage points. However, in the law that enters into force, the total interest rate on the loan may not exceed 20 percent at any point.

In an article previously published by Zolva, the rapid turnaround in unsecured credit interest rates has been reviewed. For new withdrawals, the average interest rate has risen to 11 percent. Looking at the statistics on credit interest rates published by the Bank of Finland, one might assume that the change is not significant, but the change will probably limit the possibility of certain consumers to get credit.

The most significant effect of the interest rate change will be on online shopping payment service companies that offer payment options by invoice and in installments, and whose interest rates have generally been close to 20 percent. In addition, the interest rate cap will have effects on certain credit cards and unsecured consumer loans where the interest charged has been over 15%.

The interest rate on new unsecured loans has risen rapidly to more than 11 percent on average. Zolva’s Olli Jumeneff encourages consumers to be careful with their finances.

High inflation has reflected quickly in interest rates. The rise in interest rates can also be seen in unsecured consumer loans, in which loan portfolio in Finland is around 11 billion euros (February 2022, 11 billion euros). The unsecured loan portfolio of household consumer loans is about 8.5 billion (8.2), when loans related to the purchase of financing registered vehicles are removed from the figures.

According to Olli Jumeneff, Head of Sales of debt collection agency Zolva, the average interest rate on credit lines including credit cards and other unsecured consumer loans is currently around nine percent (6.6). Looking further down the line in the figures, the average interest rate on new consumer loans has already risen to 11 percent (8).

Jumeneff demands control from consumers in their consumption and personal economy. The danger is overindebtedness.

– Inflation drives up costs everywhere. The need for consumer loans increases if consumers do not have enough buffers in their personal economy.. The situation is also challenging for companies, as our latest CFO-Barometer shows. It is difficult for companies to pass on price increases in their entirety to customers, even though costs have risen significantly in a short time. It weakens profitability and affects employment rates, he says.

According to Asiakastieto, more than 365,000 (389,000) Finns have a payment defaults in their credit information, even though the amendment to the Credit Information Act that came into effect at the end of last year removed almost 20,000 people from the register.

Jumeneff predicts that the interest rate peak has not yet been seen.

– The European Central Bank’s increases in the reference interest rate do not alone explain the increase on unsecured consumer loan interest rates. Lenders also face cost pressures from elsewhere, and the rise in funding costs for lenders is greater than the rise in the reference interest rate. In that case, the costs cannot be transferred in their entirety to credit interests of consumer loans, he continues.

Legal changes to slow down overindebtedness

Unsecured consumer loans refer to loans for which no guarantee or other security has been given as collateral. Such loans are common, for example, in home renovations or home appliance purchases.

Several changes to the legislation are planned, the aim of which is to reduce over-indebtedness of consumers. They also affect the market for unsecured consumer loans.

Jumeneff says that the most significant measure in the fight against overindebtedness is a positive credit information register. Its utilization in lending will begin on April 1, 2024.

A positive credit information register means that all lenders are obliged to report the credits taken by the consumer to a common register maintained by the authority. Credit register data can be combined with income register data.

In the future, lenders will know how much credit the consumer has to various financial institutions and what his ability to pay is in relation to the amount of credit.

Jumeneff says that this increases transparency and helps responsible lending. I hope this means that the payment of previous credits with new credit will decrease, and through this, customers will have a better chance to settle their debts at the latest through collection or foreclosure, when the over-indebtedness can be stopped as early as possible.

Other concerns were, for example, the effect of the already raised prices on general consumption, fuel prices, the difficulty of forecasting, high pressure for wage increases, increased funding costs and the weakening of profitability.

According to Zolva’s CFO Lauri Kosloff, the inflation levels have come as a shock to some of the companies.

– Even though the media has talked about the increase in consumer prices, companies do not see price increases as an easy solution to cover increased production costs, as there is competition in the market. Consequently, the impact of high inflation on businesses is and will be one of the biggest challenges after the pandemic, says Kosloff.

According to Statistics Finland, the annual increase in consumer prices was 8.4 percent in January. Inflation is predicted to remain high for upcoming months.

Inflation is also one of the biggest explanatory factors why the Economic pulse of the CFO-Barometer remained at modest 62 points. The pulse of the Finnish economy describes the growth and profitability prospects of the largest companies in the next three months.

As many as 40 percent of the CFO’s who responded to the CFO-Barometer predicted that growth and profitability will remain weak or avoidable.

Taking into account all the answers, the economic pulse of companies remained at 62 points. The deviation in the answers was wide, as the lowest score was 20 points and the highest was 96. The maximum score was one hundred.

Zolva’s CFO Lauri Kosloff considers the large deviation in the answers surprising and worrying.

– In some companies, the results are indicating strongly deteriorating situation and even difficulties in terms of continuing business operations. The barometer produced by the Confederation of Finnish Industries also supports the view of companies’ low expectations. High inflation and consumer prudence will certainly have a debilitating effect on the results of the pulse. Financial decision-makers are generally a bit cautious in their estimates, especially regarding growth, says Kosloff.

The scoring of Zolva’s CFO-Barometers’ has been done in such a way that 0–10 points means the risk of going bankrupt. On the other hand, 11–30 points is weak, 31–49 points is to be below average, 50–75 points is satisfactory, 76–85 is good and more than 85 points is an excellent level.

Dividing into two groups in investments

Financial managers were also asked about the development of payment delays during the previous three months, an estimate of the amount of credit losses and the companies’ willingness to invest in the next 12 months.

Based on the answers, customer payment delays have been somewhat increasing. At the same time, 30 percent of respondents predict that credit losses will increase in the coming months.

Changes in legislation will also have an effect for secured and unsecured consumer credits and debt collection agencies. Collection company Zolva’s Head of Legal Mikko Eloranta lists the most important changes below.

Positive credit information register and interest rate cap

The usage of the positive credit information register in consumer lending will start on 1st of April 2024. The positive credit information register means that all lenders are obliged to report the credits taken by the consumer to a common register maintained by the authority. Credit register data can also be combined with income register data.

In the future, lenders will be aware of how much credit the consumer has to various financial institutions and what his or her ability to pay is in relation to the amount of credit.

– The register contains information on, among other things, on granted loans, loan principal, interest rates, payment delays for more than 60 days and information on debt recovery proceedings. This is a very positive thing. I strongly believe that a positive credit information register will decrease over-indebtedness. At the same time, it will reduce the credit losses for credit institutions, says Eloranta.

According to him, a positive credit information register should be introduced instead of lowering the interest rate ceiling. The planned amendment to the Consumer Protection Act will lower the maximum interest rate on consumer loans from the current 20 percent to 15 percent.

The law should enter into force later this year. In the government’s proposal, the transition period is six months.

– Especially in the current economic situation, it would make more sense to regulate lenders in a different way than with an interest rate cap. The danger is that when the price of money is high, granting unsecured credit becomes unprofitable. It affects consumers and the market negatively, Eloranta estimates.

Reducing the storage time of payment remarks

Payment remarks were wiped off all at once from thousands of those who received a payment remark, when the change in the Credit Information Act came into effect at the beginning of December.

In the future, the marking will be removed one month after the consumer has paid his or her debt and the debtor has reported the information to the credit information company. The aim of the law change is to encourage consumers to pay their debts regularly and to speed up the return to a “normal” situation.

The change in the law has an impact on us and our clients. We no longer receive information about the consumer’s previous payment behavior in the same way through payment remarks. This information is valuable if the person’s payment defaults have been frequent. And many of those who have received a notice of payment default have had problems with payments for a long time, says Eloranta.

– One open to interpretation has been related to the fact that disputed receivables cannot be collected. At what stage can the debt collection company check whether the dispute is invalid and the debt collection can be continued? It cannot be the case that the debtor simply disputes a claim without any grounds. Hopefully, the new guidelines for good practice in debt collection will increase transparency and leave no room for interpretation. It has an impact on the industry’s reputation. At Zolva we want to promote responsibility for the entire debt collection industry, says Eloranta.

The activities of debt collection companies are regulated by the Debt Collection Act. The law states that collection may not use procedures contrary to good collection practices. The guidelines published by the Finnish Competition and Consumer Authority aim to set a framework for debt collection companies’ procedures. However, market law decides on the content of good debt collection practices.

Other actions

Less attention has been paid to the Omnibus Directive initiatited through EU, which has been incorporated into Finnish legislation through changes to the Consumer Protection Act. For example, regulation of distance sales have been tightened, and transparency has been added to online store discount campaigns and product reviews.

– The aim of the legislation is to improve the position and security of consumers. For example, a contract made over the phone will only be valid in the future if the consumer has accepted the contract in writing after the call, says Eloranta.

In addition, a pilot project is underway, the goal of which is to increase the purchasing power of debtors in the weakest position. Bailiffs’ Office has started a pilot project, where the protection share of the protected income has been increased by approximately 190 euros per month.

At the same time, the number of payment-free months for low-income people in Bailiffs’ Office will permanently change to three months. On special grounds, a debtor with a low income can also be granted a fourth payment free month. The change will take effect in May.

– The measures are understandable in this economic situation. The wish is that the real benefits are also investigated and analyzed thoroughly. Otherwise, the recovery from overdue debts will only be prolonged, Eloranta estimates.

– The industry would have tools and opportunity to act differently. Methods of handling payments familiar from today’s banking world could also be used in the debt collection industry. Otherwise, the activities towards end customers for paying invoices must be on a completely different level. We are able to offer all the most commonly used payment methods and channels as well as flexible payment plans for paying the unpaid invoice. It improves the customer experience.

Flexibility, modern technology and real-time data transfers

Rytsölä emphasizes the opportunity for clients to make choices. Every collection process can be agreed on a customer-specific basis thanks to a flexible system and modern technology.

The utilization of data is key for success. Data and information related to assignments are transferred in real time between different systems and databases when it comes to transferring an invoice to collection, making a payment, status information or reporting.

– As a result, many things become easier and transparent, such as invoice management, payment and cash flow monitoring, he lists.

Strong footprint in the market

Zolva Group is a new player in Finland and internationally. However, the turnover forecast of the company founded in the second year for last year was already almost 50 million euros. Growth has mainly come through acquisitions.

In addition to the Nordic countries, Zolva has operations in Italy, Spain, Portugal and Luxembourg. The company’s headquarters are located in Norway.

Enters the market with NOK 4,2 billion

After a period of negotiations Finans2 agreed upon an extensive partnership with J. Safra Group, an international conglomerate controlled by the Safra family. J. Safra Group is committed to contribute with 400 million euros, equivalent to NOK 4,2 billion. Rangnes says the company most likely will provide significantly more capital in the long run.

“The credit management industry is fragmented and barely consolidated. We want to consolidate in the long run. As such, there is a need for more capital”, says Rangnes to Finansavisen. J. Safra Group is a leading company within the industry, and the family-owned conglomerate owns banks and companies across the world. The Group has 270 billion dollars in total assets and 20 billion dollars in equity. Read more about J. Safra Group.

Pertnership will add new opportunities

“By having J. Safra Group on board we have a solid financial backing. The Group will be involved in all our purchases to ensure a good return on invested capital”, says Rangnes.

Joseph Safra, the founder of J. Safra Group died last year, 82 years old. He was the wealthiest banker in the world and the richest man in Brazil. According to Forbes, Joseph had a fortune of 13.8 billion dollars in 2020. The conglomerate currently consists of the following banks: Banco Safra, the sixth largest bank in Brazil, J. Safra Sarasin, the sixth largest bank in Switzerland and Safra National Bank of New York.

“We will most definitely benefit from Safra Group`s financial muscles and expertise. The partnership will give us many opportunities in the future”, says Rangnes.

The first Acquisition

Finans2 has offices in Norway, Sweden and Denmark. The ambition is to rapidly establish a presence in six to seven countries within a short period of time. The new group has recently made its first acquisition outside the Nordic region, the Iberian company Multigestion.

“With the acquisition of Multigestion, we are acquiring a solid platform in Spain and Portugal and will be well positioned in the financial services segment, focusing both on third party collections and portfolio acquisitions.” Multigestion is a well-established player in the Iberian NPL markets, having operated in Spain and Portugal for close to 30 years. Multigestion has scale, bringing with it circa 250 employees and EUR 5.7 billion of NPLs under management as a third-party collection provider, and mainly serves the financial services sector. Last year the company had a revenue of 8 million euros.

Buys portfolio in Spain

Initially, Aleph Capital and Safra Gorup enters the partnership with 20 million euros each. As such, they will get an 80 percent ownership share in Finans2. Nordbrekken and Rangnes enters the company with a total of 5 million euros, giving them 20 percent ownership.

“Going forward, J. Safra Group will provide significant equity making them the largest owner”, says Rangnes. In addition to Multigestion, the new platform has also made its first acquisition of a Spanish unsecured NPL portfolio. The portfolio has an outstanding principal of EUR 3.16 billion and consists of 650 000 claims. The portfolio will be managed by Multigestion.

“With the acquistion of Multigestion, Finans2 is already present in five countries. Our initial aim is to expand in the Nordics and Iberia. In parallel, we are working with two/three other countries. We want to enter larger markets such as Italy, France and Germany”, says Rangnes.

Strategic partnership enables geographical growth

As part of this strategic partnership, Aleph and the J. Safra Group are pleased to announce the signing of definitive documentation to purchase Multigestion Iberia S.L.U. (“Multigestion”). In March 2021, a fund backed by Aleph had announced the agreement to acquire Finans2 in Norway. Multigestion and Finans2, pending receipt of regulatory approval in Norway, will be both integrated into the new pan-European platform by the management team led by CEO Endre Rangnes. The acquisition of Multigestion marks the next key milestone in the development of the platform as it establishes itself as a significant pan-European NPL purchaser and servicer.

Multigestion has solid track record in Iberian market

Multigestion is a well-established player in the Iberian NPL markets, having operated in Spain and Portugal for close to 30 years. Multigestion has scale, bringing with it circa 250 employees and EUR 5.7 billion of NPLs under management as a third-party collection provider (3PC), and mainly serves the financial services sector. Finally, Multigestion has developed a highly scalable collection platform and has invested significantly in new collection processes over the past 3 years.

In addition to Multigestion, the new platform has also made its first acquisition of a Spanish unsecured NPL portfolio. The portfolio has an outstanding principal of EUR 3.16 billion and consists of 650 000 claims. The portfolio will be managed by Multigestion.

Market growth supports geographical expansion

According to the European Central Bank, the size of the European NPL market is expected to increase to ~EUR 1.4 trillion by end 2022.  The platform’s new management team has proactively targeted Iberia as one of the first jurisdictions to expand into along with the Nordics. The ambition is to become the partner of choice to local financial institutions for the management of their unsecured NPL portfolios, whether through NPL sales or long-term scalable and flexible servicing agreements. Following the Multigestion acquisition, the new platform will be well positioned to do exactly this in Iberia.

Closing of the acquisitions

Closing of the Multigestion and Spanish NPL transactions are not subject to any regulatory approval and are expected to occur by the end of July 2021. The acquisition of Finans2 remains subject to on-going regulatory approval by the Financial Supervisory Authority of Norway (Nw. Finanstilsynet). Once the approval is obtained the businesses will be combined into the new group structure.