Lloyds Bank retaining information after IVA cleared

Elephantinbed

My partner received his completion certificate last year for a 7 year old IVA, meaning Experian etc now all show clear and a Very Good Score.

We went to Lloyds to change the address of his savings account and were advised by the Bank Clerk to change the savings account to one with better interest. Seemed like a good idea but the account was immediately rejected. When we spoke to the Bank Manager, she said it was because of my partners IVA still showed on the account. He explained that this was now cleared and the Manager said great, bring the paperwork in and she would send it to the right department....that was 3 months ago, various visits, phone calls to resolve. Until today my partner received a phone call, from the same Bank Manager and was told...

"The IVA no longer shows but Llloyds, as well as all affiliated financial groups, have recorded record of the IVA which will remain on their files indefinately!" Shocked my partner asked if he could have a letter to confirm this and was told "No, Lloyds have no legal obligation to provide any paperwork, basically they can choose who they wish to do business with"

Is this legal? I have been through the forums and can see a lot of people being rejected by Lloyds, Halifax and C&G and probably also having this murky information held against them!!!

Any advice as they refuse to provide anything in writing and even when questioned about Data Protection Act, they said it was not illegal for them to hold this.

Sorry, not sure what to do as this doesn't seem right for my partner and I am trying to help him sort it out.

Thank you in advance for any advice :A

Thrugelmir

Elephantinbed wrote: »

"The IVA no longer shows but Llloyds, as well as all affiliated financial groups, have recorded record of the IVA which will remain on their files indefinately!" Shocked my partner asked if he could have a letter to confirm this and was told "No, Lloyds have no legal obligation to provide any paperwork, basically they can choose who they wish to do business with"

Is this legal?

Totally. On what grounds shouldn't it be. As it's a business relationship. Nothing new in this. Same would apply to any other form of default.

Elephantinbed

Thanks. I do agree that this is their prerogative but my concern for my partner is that they have not been transparent about this. In fact just the opposite. They will provide nothing in writing and even the Bank Manager alleges she was unaware of this practice as she has been trying to help remove the IVA notification for just over 3 months.

This is all new to me and surprised at how hard it has been for my partner to deal with all the fall out form the IVA he had 7 years ago. When you read about IVAs they give the impression that after 5 years and it is is repaid, you have the chance to rebuild your credit. The fact that there is this 'background information' existing, for what appears indefinately, is not transparent and seems at odds with Data Protection.

If we hadn't tried to update the address on his savings account, he would never have known.

I appreciate your response, thank you.

foxy-stoat

Do they NEED to be transparent about accepting/rejecting their customers?

Do they NEED to provide something in writing which states their decisson critrea?

The IVA information drops off the credit file after 6 years as well as all the defaults but thats all. You do have a chance to rebuild your credit history, if Lloyds do not want your business then look elsewhere, there are plenty of banks to choice from.

There was a question on my mortgage application "have you ever been insolvent", I had to tick yes and give details, it was upto them if they still wanted my business. I do not think Data Protection is relevant in this case though.

Good lucks with rebuilding!

fermi

The bank can justify the continued processing and retention of that information as it is in their legitimate interests to do so.

They would have to provide any personal data they retain, if this counts, under a SAR, but would not have to provide any explanation/justification.

If you are unhappy you can make a complaint then take it to the ICO, but I cannot foresee any outcome other than them agreeing that the bank can keep a basic record of the fact of the IVA and that you had a debt to them in it.

Thrugelmir

Elephantinbed wrote: »

The fact that there is this 'background information' existing, for what appears indefinately, is not transparent and seems at odds with Data Protection.

Any information held is factual and held for internal purposes only.