Attachment
ACCESS TO PERSONAL CREDIT FILES BY THE POLICE
To most observers, access to personal credit
files appears to be straightforward and routine. Every day, over
one hundred thousand credit reports are requested from credit
reference agencies to help people to obtain credit quickly.
Within seconds, credit reference agencies help
to confirm the address given by an individual against the latest
electoral roll. Public information such as bankruptcies and county
court judgments are also made available. Credit reference agencies
also have details of consumer credit activity because they keep
a record of every search made. Over 400 credit grantors supply
the agencies with details of account performance every month—for
example, details of mortgages, credit cards, storecards and utilities
are held. Performance histories are compiled over six years, giving
a comprehensive record of an individual's financial circumstances.
It is not really surprising that the Police,
HM Customs and Excise and other Government and security bodies
often approach credit reference agencies for copies of credit
files—both public and personal financial information. As
all of the information on credit reference agency databases is
factual, this can provide valuable assistance in the prosecution
of offenders or in the prevention of crime.
Access by credit grantors
When a credit grantor searches a credit reference
agency, the consent of the individual must have been obtained
beforehand. As every search leaves a footprint, it is visible
to the individual when a copy of the credit file is requested.
Under Section 158 of the Consumer Credit Act 1974, every person
has a right to obtain a copy of their credit file from a credit
reference agency for a fee of £2.00.
Credit files contain details of people living
in the same household who share the same surname or are financially
connected.
This follows a ruling from a Tribunal in 1993,
where it was deemed appropriate to return such details to help
credit grantors ensure that credit is extended in a socially responsible
manner and to avoid over commitment.
Access by the police, HM Customs and Excise and
other security forces
Individuals have rights under the Data Protection
Act 1998 to ensure that disclosure of personal financial information
may be given only:
— with their consent, as described
above;
— when sought for the apprehension
or prosecution of offenders, for the prevention or detection of
crime, or for the assessment or collection of tax and duty.
The Data Protection Commissioner has advised
that when personal financial information is sought under the latter
category, then information may be disclosed by a credit reference
agency:
— only on an individual case by case
basis
— specifically relating to a named
individual and not to a household
— subject to a written request from
a person at Police Inspector rank or equivalent
— subject to the credit reference agency
making enquiries to establish that the extent of information sought
is reasonably required for prosecution or prevention of crime
— subject to a footprint being left
on the credit reference agency database, unless a specific request
not to do so is made at the time of enquiry on the basis that
disclosure of a search would prejudice prosecution or investigation
Such enquiries are permitted under Section 29
of the Data Protection Act 1998. A charge of £10.00 is payable
for each name searched.
On-line information
The Data Protection Commissioner has advised
the credit reference agencies that "Section 29" searches
of personal financial information must not be made on-line.
On the other hand, on-line searches of public
information may be made. The Data Protection Commissioner advises
that such searches should always leave a footprint on the credit
reference agency database which is visible to the individual.
For further details
Please contact Experian on 0115 976 8708
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