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Danish watchdog investigates Danske Bank over erroneous debt collection

FILE PHOTO: A Danske bank sign is seen on a bank's headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Nikolaj Skydsgaard/File Photo

COPENHAGEN (Reuters) - Denmark's financial watchdog has launched an investigation into how Danske Bank DANSKE.CO could wrongly collect debt from up to 106,000 customers since 2004, it said late on Tuesday.

Danske said on Monday that due to errors in its IT system, it had collected outdated or excessive debt, and that it was currently reviewing all potential cases to ensure customers are fully compensated. [nL8N2FX1W4]

The FSA said in a statement it had trusted the debt collection errors had been rectified, after Danske updated the watchdog about the case in October last year.

The watchdog said it decided to launch an investigation following the news that surfaced on Monday.

Danske Bank did not immediately reply to a request for comment.

Reporting by Jacob Gronholt-Pedersen; editing by Jason Neely