Creation Finance and the 6 year rule

Igol

Forgive me if this has already been done, but 10 pages in and it hasn't helped.

My wife has just had a FOS ruling in her favour against Creation for an old loan she had - pre-filled form, no figures without PPI on the CCA. I was amazed that they tried to say it was her fault and we had to take it to the FOS.

Anyway the SAR went in when she was getting the info and threw up an old store card that was also with Creation. They say that they don't have any statements for this card but have sent details of the repayments she made so we're none the wiser if she had any PPI on it or not. They're using the 6 year excuse - 'system purged don't hold any other records'; which I understand is a common tactic.

Except she made the request 5 years 8 months after the account was closed. I've read contradictory things online about the 6 year rule, some saying that they don't have to have full records for 6 years and can delete bits of your records on dormant accounts and others saying that they legally have to have it all. Which is it?

WatchMan

There are some compliance rules which say that certain data should be held for the length of the business/client relationship plus 6 years. I don't think this applies to every piece of information - so it is conceivable that the information which would allow Creation to look into this complaint would no longer be around, even if the various rules were followed.

Then there are general principles set by the Information Commissioner's office. These don't set time frames, but just say that information shouldn't be retained for longer than it is needed. So all the information would be needed while the account is open - it is just a matter for the business to decide when to destroy the data once the account closes.

6 years is usually opted for because most causes of action (i.e. legal claims) will have a 6 year limitation period.

The answer is that they've probably not done anything wrong. They certainly haven't been very helpful - and, to be honest, given issues with PPI, it'd been good practice for them to hold on to the records for at least the 6 years.

[Deleted User]

Igol wrote: »

I've read contradictory things online about the 6 year rule, some saying that they don't have to have full records for 6 years and can delete bits of your records on dormant accounts and others saying that they legally have to have it all. Which is it?

They only have to keep records for as long as it might reasonably be needed. There is no six year "rule". It's just guidance from the regulator which is in line with data protection.

If they have destroyed your records, no amount of FOS or ICO involvement can magic them up.

On balance, I'd say you'd be wasting your time pursuing this after the original rejection letter.

However, you might get some satisfaction from knowing that Creation will have paid £500 for your FOS referral.

Igol

Thanks both and yes it was somewhat gratifying to know that the FOS involvement cost them
It is very convenient for them that they 'lost' the bulk of the data but still have the payment amounts isn't it??
So looking at it from another angle, would the underwriters hold any evidence of a policy?

[Deleted User]

Igol wrote: »

It is very convenient for them that they 'lost' the bulk of the data but still have the payment amounts isn't it

No. They've kept only what is required, nothing has been "lost". Eventually the remaining record too will be deleted.

Igol wrote: »

would the underwriters hold any evidence of a policy?

I'm afraid not. The Underwriter route is only applicable where the seller was not regulated at the time of the sale.

WatchMan

Moneyineptitude wrote: »

However, you might get some satisfaction from knowing that Creation will have paid £500 for your FOS referral.

These types of cases are dismissed, so no fee is chargeable.

[Deleted User]

Igol wrote: »

My wife has just had a FOS ruling in her favour against Creation for an old loan she had - pre-filled form, no figures without PPI on the CCA. I was amazed that they tried to say it was her fault and we had to take it to the FOS.

WatchMan wrote: »

These types of cases are dismissed, so no fee is chargeable.

Why would the FOS ruling on the old loan be free for the Bank? The case was not dismissed, it was upheld.

The store card for which there are no longer records is a separate issue. The Ombudsman didn't rule on the lack of records, but on the mis-selling of a loan. This will have cost Creation £500, just as I said.

WatchMan

Moneyineptitude wrote: »

Why would the FOS ruling on the old loan be free for the Bank? The case was not dismissed, it was upheld.

The store card for which there are no longer records is a separate issue. The Ombudsman didn't rule on the lack of records, but on the mis-selling of a loan. This will have cost Creation £500, just as I said.

Ah, I mis-read - my mistake.

sun73

Igol wrote: »

Forgive me if this has already been done, but 10 pages in and it hasn't helped.

My wife has just had a FOS ruling in her favour against Creation for an old loan she had - pre-filled form, no figures without PPI on the CCA. I was amazed that they tried to say it was her fault and we had to take it to the FOS.

Anyway the SAR went in when she was getting the info and threw up an old store card that was also with Creation. They say that they don't have any statements for this card but have sent details of the repayments she made so we're none the wiser if she had any PPI on it or not. They're using the 6 year excuse - 'system purged don't hold any other records'; which I understand is a common tactic.

Except she made the request 5 years 8 months after the account was closed. I've read contradictory things online about the 6 year rule, some saying that they don't have to have full records for 6 years and can delete bits of your records on dormant accounts and others saying that they legally have to have it all. Which is it?

Creation Finance told me the same thing in my DSAR response about store card statements, so I referred it to the ICO. Approximately two months later I received every single copy for the whole duration of the account. Hope this helps.

Igol

Thanks all, we're now looking at the other 2 loans she's had.
Thankfully I'm training her well and she shouldn't repeat the same mistakes