A geeky debt question: GDPR

Legacy_user · 10 January 2018 at 7:56AM

Hi,

In May there are changes to data protection laws in EU law which will so-say put more power to individuals on how their personal data is stored etc.

I don't know a great deal about it, apart from just a general understanding that if companies mess up and do things wrongly the impact on them will be far greater (bigger fines.)

So in the hope that someone knows more than me about this (not hard!) I just wondered what impact this would have on debt collection companies? E.g. If you had a loan that you defaulted on, so the company transferred debt to a debt collection agency, who has never had your personal permission to have your contact details...will this impact on their ability to collect the debt?

I've no idea why this little puzzle appeared in my brain, but if anyone can shed some light, much appreciated! Thank you.

MEM62 · 10 January 2018 at 12:24PM

The change in approach basically means that, under the new system, it is unlawful to hold any personal data, either as a data controller or data processor unless you have a legitimate reason to do so.

The change in regulation will not prevent debts from being bought or sold - or the use of debt collectors as within the agreements you enter into with financial institutions allows them to process and use your data for these purposes.

Anyone thinking that the new rules will allow them to escape their debts will be disappointed. It may however, have a positive impact in that the CRA's will need to be far more fastidious in ensuring that the data they have on you is correct and promptly make corrections when errors are found. It might even have wider implications than that in respect of CRA's but the seminars I have attended on the subject are not aimed specifically at the finance industry so we did not drill into the details in this area.

theroamingnomad · 11 January 2018 at 12:20PM

ramblehan wrote: »

So in the hope that someone knows more than me about this (not hard!) I just wondered what impact this would have on debt collection companies? E.g. If you had a loan that you defaulted on, so the company transferred debt to a debt collection agency, who has never had your personal permission to have your contact details...will this impact on their ability to collect the debt?

I hope it will just make them all a little bit more cautious about spurious claims and ensuring that their data storage and protocols surrounding such things are much tighter. GDPR will, I hope, also ensure that CRAs are a lot more robust in their protocols too.

System · 13 January 2018 at 9:08AM

Thanks both. Much as I expected, but good to know. Thank you.

A geeky debt question: GDPR

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