Customers’ rights ‘breached’ by bank laws

New rules, concerning the sharing of information about customers between banks, are being criticised.

Credit check firm checkmyfile.com says the move could be in breach of millions of people’s basic human rights.

The company claims that the rules will erode customers’ rights to privacy as details of around 33 million current accounts could be shared without the individuals’ consent.

At present, it is not legal for the details of older accounts, those opened before 1998, to be shared, but the Department of Trade and Industry is said to be looking into getting around this.

“The government’s proposal will drive a coach and horses through banking confidentiality, data protection laws and the European Convention on Human Rights,” said a checkmyfile.com spokesperson.

“For many people, their bank account is sacred and most bank accounts are still not shared with the credit reference agencies.”

The present law means account details cannot be shared with anyone without the individuals consent.

Tags: reference, credit reference agencies, customers rights, protection, bank account

Separation must be financial too

January is the peak month for couples splitting up and those who find themselves in this situation are being warned to remember that financial ties remain long after the love has gone.

Research shows that couples are most likely to go their separate ways during January as the pressures of the Christmas period act as the straw that breaks the camel’s back in a relationship which is failing.

However, many people forget that although they may no longer be in an emotional relationship with their former partner, they may still be in a financial one.

MyCallcredit is warning those who have split that they should break these ties, or risk their ex having an impact on their credit file and future creditworthiness.

“Any joint credit arrangements need to be transferred into single names and joint accounts closed before an individual can disassociate themselves from their former spouse,” said Melanie Mitchley from MyCallcredit.

“If people aren’t proactive they can find their own finances affected by their ex’s future partners. And that’s something to be avoided at all costs.”

The firm says it is important that any joint credit commitments are brought to an end, which may involve taking out a new loan to pay off a previous debt.

Once this is done, the credit reference agencies should be contacted and informed that there should be no more association between you and your former partner.

“Splitting up is always difficult but it pays to take the initiative and disassociate yourself from your ex and their borrowings as soon as possible – otherwise you could be in for a nasty surprise,” added Ms Mitchley.

Tags: straw, Separation, Financial services, credit reference agencies, relationship, joint credit arrangements, commitments, January