Customer’s data protection fears hinder Lloyds TSB’s offshoring plans

Lloyds
TSB’s plans to transfer work to India are being challenged by one of the bank’s
customers on the grounds that they infringe legal requirements concerning data
protection.

The
case against Lloyds TSB is that India does not have the same stringent standards
of data protection that are legally required by the Data Protection Act 1998.

European
legislation requires that sensitive personal data can only be transferred
outside of the European Economic Area with the express consent of customers.

India
is not included on the European Union’s list of countries that offer adequate
levels of protection for personal data.

The
government-appointed Information Commissioner is being asked to rule on whether
Lloyds TSB is acting legally when transferring sensitive personal data abroad.

Steve
Tatlow, assistant general secretary at Lloyds TSB Group Union, said: "This
is an important case. If successful, it could force Lloyds TSB to drop its
offshoring policy for fear of losing many customers.

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"Concerns
over data protection are yet another reason why Lloyds TSB should now listen to
its customers and commit itself to the UK."

By Quentin Reade