ID 'neglect' harming consumers

CONSUMERS are being unfairly denied credit or prevented from opening bank accounts because of financial companies' poor handling of their personal data.

Research from the National Consumer Council has revealed 80% of people believe they have lost control of their personal information as companies use more sophisticated technology to track our spending and behavioural habits.

The NCC claims the mass of information being produced is not being used correctly by the firms that obtain it, leading to identification 'neglect and pollution'. In the US, one in four credit records has errors serious enough to prevent the holder obtaining credit.

NCC chief executive Ed Mayo said: 'We are living in a surveillance society but our data protection laws aren't up to the job. Research consistently shows that many companies fail to comply with data protection legislation ? often unaware of their responsibilities.

'Giving the UK's personal information regulator auditing and inspection powers would help enforce new, tougher laws better.'

Mayo added that consumers don't help themselves by failing to check whether their credit record has been tarnished. He said only one in 10 people has contacted a credit reference agency to obtain their record.

The organisation also recommends consumers make sure they don't throw information that could be used to open false accounts in their name away. It says documents should be shredded or ripped up where possible. Identity theft is one of the UK's fastest growing crimes and is up sevenfold in the past five years.

Weymouth-based engineer David Morris was denied a credit card earlier this year after his credit record became intertwined with a serial defaulter with a similar name.

Debt collection agencies tracked Morris to his Dorset home and informed credit reference agencies that he was in default on several loans without confirming he was the person they were seeking.

The 39-year-old engineer said: 'This was absurd, I had always made sure I paid my credit card bills in full and on time and have never defaulted on any credit agreement. I contacted the companies who sent the letters but they were never very helpful.'

Morris' credit record was cleared after he contacted credit rating company Experian and a disassociation notice was put on his file to stop him being confused with the other individual.

NCC has produced a new book, The Glass Consumer, highlighting the dangers of the misuse of personal information.