Do you trust the Financial Conduct Authority with your personal data?Make Text Bigger
The Financial Conduct Authority (FCA), partially taken over from the FSA, is to collect the personal information from mortgage applications for use by its policy risk and research division to monitor the lending of banks.
This raises serious Data Protection act questions and we are also asked to trust another body Phoenixed out of the FSA who failed to monitor banking practices that lead to the near complete collapse of the UK’s banking industry.
The plan under the Mortgage Market Review (MMR) will be to capture all the information supplied on a mortgage application, which if you have ever filled one out you will know contains pretty much everything about your personal, employment, income, spending, assets and credit details.
Under the Data protection act if you collect personal data the duties include:
- Only recording information required to complete the requested transaction
- The Information must be accurate and not of opinion
- The information must be kept securely and not used for another purpose unless requested to do so.
If this comes into force under new MMR rules in April 2014 customers will have no option as the Lenders will simply claim they have to pass on your data as it is a requirement to complete your requested transaction
For existing mortgages the FCA will collect the property’s postcode, an estimate of what it is worth and information on the current outstanding balance and any arrears.
It is not yet clear if Buy-to-Let mortgage information will be collected, but there seems to be no reason why this would be left out as it is designed to monitor the prudence and performance of bank lending.
The FCA said “the plans reflected its objectives to protect consumers by helping it identify risks and prevent harm, enabling it to make quicker and bolder decisions to keep the market running efficiently and promoting effective competition.”
“Any personal data we collect will be fairly and lawfully processed in compliance with the first data protection principle. We consider that in collecting the data we will be acting compatibly with the right to privacy. The collection of the data is necessary to achieve the aims set out in this consultation paper, and any interference with the right is proportionate to those aims.”
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