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FCA Compliance Causes Data Dilemma...

As published in Motor Finance August 2014

David Wood, a partner in DWF’s asset and consumer finance team, explains how compliance with FCA requirements under the new consumer credit regime can lead to conflicts with other legislation.

When lenders become aware that a customer has a mental health issue, but that customer will not give consent to the lender processing that information as sensitive personal data under the Data Protection Act (the DPA), they face a dilemma between the requirement to treat their customer fairly and an inability to record or process this information without breaching the DPA.

In terms of the DPA, when a customer makes a disclosure of sensitive personal information the lender should explain to the customer how the information disclosed will be used and obtain explicit consent for the use of that information for those purposes.

Read the full article on our dedicated website to Consumer Credit »

This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

FCA Consumer Credit Regime

1 April 2014 saw the start of a new regulatory regime for the consumer credit industry. It is vital to understand what your business should be doing to ensure it will remain compliant. DWF are on hand to help you navigate the changes which lie ahead and ensure that you have all of the information and resources you need.

Visit consumercredit.dwf.co.uk

David Wood

Partner

I advise clients in all sectors on asset and consumer finance documentation and procedures and FCA consumer and mortgage credit regulation.