Thousands of Bank of Ireland UK customers likely affected due to inaccurate data
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In a recent report, the Information Commissioner’s Office (ICO) found that the Bank of Ireland UK shared flawed customer data with various credit reference agencies and other entities. The inaccurate information may have affected 3,284 customers, causing irreparable damage.
NEW: We’ve issued a reprimand to Bank of Ireland UK for sending incorrect information on credit profiles for more than 3,000 customers to organisations that help lenders decide whether to approve financial products.
Read the reprimand in full here: https://t.co/1TgTGCO3Px pic.twitter.com/NaKS2gaOEx
— ICO – Information Commissioner's Office (@ICOnews) December 15, 2023
What happened?
According to the ICO, the flawed data shared by the Bank of Ireland UK may have resulted in refusals for mortgages, credit cards, or loans. It may have also caused lenders to grant too much credit to their customers — possibly figures that they are unable to afford.
Commenting on the matter, the ICO said that it is impossible to determine the actual damage caused to each customer. The nature of the situation is extremely complex, and there are numerous factors at play. Many different aspects contribute to calculations of credit scores, so the exact damage cannot be determined. Even so, the impact is estimated to be overwhelmingly negative.
The Bank of Ireland UK was initially found to be in breach of data protection law back in March 2021 — more than two and a half years ago. At the time, it was found that the bank failed to make sure that the personal data of its customers was accurate, as per GDPR.
What followed was the official reprimand, which recommended that the bank support all of the affected customers by making sure that there were robust processes set into place. They are also to be reviewed regularly and with great care.
The bank has taken steps to support affected customers
The head of investigations at ICO, Natasha Longson, commented on the situation stating that the mistakes made by financial institutions can have long-term and far-reaching consequences on the customers. This can strongly affect even the people’s everyday lives.
She added that some of the users that were affected may have been refused mortgages, loans, or credit cards, even though they can afford them. Alternatively, those who could not afford them may have been granted any of such benefits due to the faulty data.
More than credits and mortgages, negatively affected users may have even lost privileges such as the ability to get a mobile phone contract, insurance, or the ability to sign up with utility firms, all because of the Bank of Ireland UK’s mistake. In other words, the bank’s error might be the cause of misery for thousands of people.
However, Longson also added that the ICO has recognized the steps made by the bank in order to correct its error. It has made moves to support affected customers, and it is also reviewing its data management process, which is the first step on the road to fixing it.
As a result, she said that the ICO believes that a reprimand is the best and fairest outcome, given the situation. She added that the bank has learned its lessons that will help it avoid such mistakes moving forward.
