Data protection breach between credit reference agency and debt collection agency?

[chrizola]

Hi everyone,

 

I have looked to see if someone has posted something like this already. I haven't seen anything, but please excuse me if there is something on this already.

 

I've seen on another post on here that debt collectors trace people via credit reference agencies. This has shocked me since I was initally blaming my bank and/or mobile company for divulging my address to a DCA (I'm not currently on the electoral roll), but also because I thought the purpose of these bureaux was to provide lenders with our debt repayment performance not for DCAs to trace people .

 

Could someone please advise whether this practice is permitted under data protection laws? Is it considered a fair and lawful treatment of personal data? In other words does it constitute an exception to the normal data protection requirements? From what I've been able to understand, exceptions are usually related to criminal offences and the prevention thereof i.e. police investigations. Please help as I'm getting pestered by a DCA!

 

Many thanks in advance for your help

[silverfox1961]

Hi and welcome to CAG

 

If the debt the DCA are chasing is yours then they do already have your permission to trawl your credit file. This is agreed to when you sing on the dotted line (or tick the box online)

 

If this isn't your debt then they don't have your permission and as such you should report them

[chrizola]

Thank you so much for such a quick and helpful response silverfox1961!

 

The debt is mine, but it dates back to 1995. Would there already have been a data protection clause in the terms and conditions back then? Just to explain, this debt is with the Student Loans Company with whom I have always maintained a good relationship. Most of my debt is deferred every year because I do not earn above the minimum amount. However, a small part of the debt became due one year when I failed to defer in time. Tonight I called the SLC and they so very kindly agreed to take my arrears back in house (and out of the hands of this awful debt collector, Buchanan Clark + Wells!!). I made a payment and agreed a payment plan. Great!!

 

However, as you can see I'm still pursuing my case against Buchanan Clark + Wells. I want to make sure they have followed correct procedure because they have caused me some undue stress. Firstly, because of the manner in which they have traced/contacted me (they actually have my mobile no. and could have called me), and secondly, because they have proved impossible to get hold of (limited office hours and long waiting times on the phone).

 

Sorry, this is all background, but I didn't want anyone to think that I've been defaulting on my student loan since 1995! So if you (or someone) could let me know whether in 1995 loan T&Cs had data sharing clauses that would be a tremendous help.

 

Many thanks again.

[silverfox1961]

The only true way of finding out is to get a copy of the terms and conditions for the student loan.

 

Usually, there is a clause that allows creditors to share your data with third parties and a DCA would come under that umbrella

[Mr Worried]

WOW..I never knew this..... This is agreed to when you (sign)

on the dotted line (or tick the box online)

 

Mr

 

 

 

 

Hi and welcome to CAG

 

If the debt the DCA are chasing is yours then they do already have your permission to trawl your credit file. This is agreed to when you sing on the dotted line (or tick the box online)

 

If this isn't your debt then they don't have your permission and as such you should report them

[chrizola]

Thanks again silverfox1961,

 

Maybe I'm being pedantic here but I've gone through my agreement and no where does it expressly state that I authorise the sharing of my personal data between 3rd parties. There are 2 clauses, but neither of them do so.

 

One clause relates to Transfer of rights and duties, and states:

"We shall have the right to assign or transfer all or any of our rights and duties under this agreement to any person without your consent" BUT there are no rights under the agreement that state that even the original loans company has the right to obtain/share personal data about me from/with a third party. Student loans aren't (or at least weren't) like normal loans that affected credit ratings (possibly not even feeding data to credit agencies).

Similarly, the Education (student loans) Act 1990, under which my agreement is made states: "Any person or body having the function of recovering loans under the arrangements may, for appropriate consideration, assign the right of recovery to a third party." BUT no where are the rights of recovery defined. The agreement is regulated by Consumer Credit Act of 1974. Do I have to read this agreement to find these rights?

The other cluase relates to Disclosure of information and states:

 

"We may if we judge appropriate disclose to any person any information concerning or relating to this agreement" Again I've not authorised them, or credit bureaux or third parties (collection agencies) to share personal information about me.

I cannot see anything in my agreement or in the Education Act that expressly states that I authorise a third party to obtain my personal data. I will now request Buchanan Clark + Wells to show me where I have authorised them to obtain data about me or should I ask the Student Loans company to show where I have signed an authorisation for thjem to share my personal information with 3rd parties?

Many thanks again

Edited March 16, 2011 by chrizola
was not clear

[silverfox1961]

Now that is interesting.

If they make no mention of sharing your data with Credit Reference Agencies, I don't think they can even look at it.

Silly question. Have the terms and conditions ever been varied during the life of the loan?

What I mean is, have they ever sent you new documents which have different terms and conditions to what you originally signed for?

[Conniff]

Come back chrizola all is forgiven

 

I'm bringing your thread back up so you can give us an update if you have any further information?

 

I know that agreements have a clause whereby you give permission to a creditor to pass information to CRA, but I have never seen anything saying you also give CRA's permission to pass that information on to others.

 

It would seem to me that the information can be passed to the CRA but they don't have permission to pass it to anyone else. Is permission to disclose personal details even covered by the DPA, because if CRA can give your details willy nilly to anyone who asks, then what is the point of a DPA?

[caledfwlch]

Come back chrizola all is forgiven

 

I'm bringing your thread back up so you can give us an update if you have any further information?

 

I know that agreements have a clause whereby you give permission to a creditor to pass information to CRA, but I have never seen anything saying you also give CRA's permission to pass that information on to others.

 

It would seem to me that the information can be passed to the CRA but they don't have permission to pass it to anyone else. Is permission to disclose personal details even covered by the DPA, because if CRA can give your details willy nilly to anyone who asks, then what is the point of a DPA?

 

OMG. That is something I have always wondered about!

 

A DCA looking at our records has the "fair use" argument, ie they are owed money, but I wouldn't have thought the CRA has a fair use argument for itself to PASS that info to the DCA. Someone is going to get to have an interesting court case - the CRA are caught bang to rights on this one imho.

 

Especially since the CRA's are also operating so many other services, marketing lists and so on, making profit out of our data.

 

I wonder if a letter can be devised asserting ones rights under the DPA and ordering the CRA's to stop processing all data. Whilst again presumably under fair use, a creditor can presumably continue to report TO the CRA, again, we can surely assert our right for the CRA to not display any of our data to anyone.

 

As an example of my at the moment woolly thinking, I can't stop my local council reporting to a Bailiff firm, but I Can stop the Bailiff firm from sharing my data with 3rd parties.

 

Where I am thinking is, how does my permission for Orange to send my data to the CRA equal Capquest, working with a credit card debt they bought being shown by the CRA what Orange have placed at the CRA on me. I don't think the wording of the DPA on contracts covers that.

[BRIGADIER2JCS]

The permission given in the agreement is to share data with CRAs and others. I'll look out the full item tomorrow as I think this has been argued many time before (unsuccessfully).

[Conniff]

Yes please if you could Brig. I can understand where it says on the agreement that you give permission for them to share with others, but have never seen anything that gives the cra permission to share. It might be all legit, but is it right, a private company making shedloads from personal information.

 

I know that dca can share when they buy defaulted agreements as they are assigned the rights of the original document.

[BRIGADIER2JCS]

Hello Phil Happy New Year,

I have a paper archive of agreements from all manner of companies it'll take a while as I'm tasked again in the service of the Crown from Tuesday to Friday this week.

 

Brig.

[Conniff]

Just talking to myself and putting things here that I have checked.

 

I see nothing that allows personal information to be released except that which is on the electoral role in the Representation of the People Act 2000.

[BRIGADIER2JCS]

I think it all relies on the permission given.

[Conniff]

Ok, I have found it. This is where you agree to the CRA releasing information to finance companies and brokers:

 

In order to apply for credit on your behalf, it will be necessary for xxxxx Funding and its partner lenders to make reference to the credit files held by national credit reference agencies about you.

 

I have seen this on two applications and assume from what I've read that wording to this effect will be on all applications for finance.

 

Damn

 

I'll get something on one of these companies one day.

[BRIGADIER2JCS]

There is more on some that refer to sharing data with assigns,and successors etc.