Debtors reclaim thousands as collection agencies scramble to block appeals

Finnish debtors are increasingly reclaiming money through legal appeals against old default judgments, while collection agencies rush to serve long-unnotified rulings to prevent reversals, overwhelming district courts.

Joonas Korhonen successfully recovered €6,000 after a district court overturned a years-old default judgment, ruling that the loan’s interest rate was unreasonable. The collection agency acknowledged the claim’s validity.

Such cases rely on a legal mechanism allowing defendants to challenge default judgments if they were never properly served. Under Finnish law, a 30-day window to appeal begins only after formal notification. Many default judgments—numbering in the millions—were never served, leaving the clock unstarted.

Korhonen, who had received around 30 default judgments over the years, acted after a bailiff advised him to consult a law firm. His appeal, filed in April 2025, targeted a 2018 ruling. The court annulled it in August, returning most of the sum—though a third went to legal fees, netting him roughly €4,000.

“Life feels freer now,” Korhonen said. “I no longer fear going hungry at the end of the month.” He cleared his final debts in January 2026 and is no longer in enforcement proceedings.

Pasi Kumpula, director-general of the Courts Administration, confirmed most appeals succeed partially or fully, encouraging more debtors to follow suit. “All signs suggest the peak hasn’t been reached yet,” he said.

The surge stems from outdated practices. When the law was enacted in the 1990s, bailiffs typically served judgments in person during enforcement visits. Today, this rarely happens, leaving millions of default rulings unserved—and vulnerable to appeal.