This area has many conditions that will apply to both the hirer providing the information about themselves and for the financial institution holding the information. The area is quite complex and the information provided here is only a brief overview and further guidance can be sought on the internet.
It is important that any finance provider is confident of whom they are lending money to, and therefore certain information is requested from the proposed hirer, prior to any finance being agreed.
The information requested is to prove the persons identification and can be known as ‘Anti Money Laundering Information’. We keep hearing that identity theft is on the increase and therefore any information that you are asked to provide should be seen as protection for you, rather than an invasion of privacy.
It is usual to be asked to provide some sort of photo identification eg a passport or driving license, along with a utility bill that shows your current permanent address, this usually has to be dated within the last 3 month period. It is therefore essential that information provided is current and correct, otherwise this may result in the finance being rejected.
The finance house is then likely to undertake a credit search from the information provided with a credit reference agency. There are now a few of these but the most recognised ones are likely to be Equifax or Experian. The information recorded here should confirm the information already provided along with any detrimental history that may have been registered against you for any default on payments that may have occurred on other borrowings that are held.
Before this information can be sought through a CRA, written permission from the individual must have been given to the finance provider, and this is generally referred to as Data Protection Authority Letter.
Under the current General Data Protection Regulations (GDPR), individuals have the right in certain circumstances, to have any data held about them removed from records that are held. Therefore, it is important that companies that hold personal information about individuals know where data is stored and who is responsible for holding such data and the process required to ensure that any data that needs to be removed is done so in its entirety.