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Loan Company Data Breach Compensation Claims Guide – How Much Compensation Can I Claim? – Amounts For Loan Company Data Breach

By Daniel Archer. Last Updated On 8th April 2022. Have you suffered harm due to a loan company data breach affecting your personal data? If so, you may be looking into whether you could claim compensation. Whether the loan company in question has breached your personal data because of hacking, mismanagement of personal data or because of an employee’s error, you could have cause to launch a claim for compensation if you’ve suffered emotional or financial harm. We have created this guide to explain how you could go about making a loan company data breach compensation claim, and what kind of compensation you could claim.

Loan Company data breach claims guide

Loan Company data breach claims guide

In the sections below, we discuss the laws surrounding data protection in the UK, such as the General Data Protection Regulation GDPR and Data Protection Act 2018. We look at the role of the Information Commissioner’s Office (ICO) in enforcing data protection legislation and explain what action they could take against loan companies that breach these laws. In addition to this, we look at how to calculate compensation for a data breach, and why it could be beneficial to have a data breach lawyer on your side to help you claim. If you would like us to help you begin a claim, or check your eligibility to claim, why not call our team on 0800 073 8804. We could perform an eligibility check for free and could provide you with a solicitor to help you start your claim.

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A Guide To Claiming For A Loan Company Data Breach

All organisations that store and process personal data have a legal obligation to protect it. If they fail in doing so and breach your personal data, it could have a number of unwelcome consequences for you. If a loan company’s data breach occurs, and you suffer emotional or financial harm because of it, you could be eligible to claim compensation for the harm you’ve suffered.

We have put together this guide to explain how a loan company data breach could affect you, and how data breach compensation claims work. In the sections below, we’ll explain the types of a data breach that could affect a loan company, including cybercrime attacks such as phishing, hacking, and mismanagement of data.

We also explain in detail what laws are in place to protect your personal data, and how a breach of such legislation could leave financial institutes such as banks, building societies and loan companies liable for claims made against them for financial damage and emotional distress.

What Is A Loan Company Data Breach?

Before we explain in detail what a loan company data breach is, and how such an incident could lead to data breach compensation claims, we should first explain what could constitute personal data. According to the Information Commissioner’s Office, which enforces data protection laws in the UK, personal data only relates to information which:

  • Could, on its own, identify a living person
  • Could, in combination with other data, identify a living person

Examples Of Personal Data

Personal data could include someones:

  • Name
  • Address
  • IP address
  • Contact information

Special Categories

There are several types of data that should come under a higher level of protection. This type of data comes under ‘special categories’ and could include a person’s:

  • Ethnic origin
  • Political beliefs
  • Biometric or genetic data
  • Health data
  • Sexual orientation
  • Sex life
  • Religious beliefs
  • Trade union membership

What Is A Data Breach?

A data breach could occur if a data security incident which leads to personal data being:

  • Accessed unlawfully or without authorisation
  • Altered, transmitted or disclosed unlawfully or without authorisation
  • Lost
  • Stolen

How Could A Data Breach Happen?

A data breach could be malicious, but accidental data breaches could also occur. They could happen due to:

  • A financial phishing hack
  • Lack of proper protection of systems holding financial information such as banking details
  • An employee’s error in sending an e-mail containing personal data to an unauthorised party
  • Malware, viruses, ransomware and other methods of cyber attack
  • The loss or theft of computer equipment on which personal data is stored

These are just a few examples.

How Could A Person Be Affected By A Loans Company Data Breach?

Data breaches could have a number of unwelcome consequences for a victim. They could cause stress, anxiety and other forms of emotional distress. They could also cause a person to suffer financial loss. In cases where financial data falls into the wrong hands, via a financial data hack, for example, a cybercriminal could use identifying data as well as financial data such as the CVV number of a credit card to steal money from you.

How Does The GDPR Affect Banks

GDPR, the General Data Protection Regulation, came into force in 2018 and is enshrined into UK law in the Data Protection Act 2018. It places legal obligations on organisations that handle personal data, and requires them to abide by 7 principles, which are:

  • Storage limitation.
  • Purpose limitation.
  • Lawfulness, fairness and transparency.
  • Integrity and confidentiality (security)
  • Data minimisation.
  • Accountability
  • Accuracy

How GDPR Could Impact Banks, Building Societies and Loan Companies

While any financial service firm would need to take care of protecting themselves from banking fraud and the risks associated with a financial data breach in order to protect their business, GDPR puts further responsibilities on them. The GDPR aims to protect all personal data.

Financial Penalties

The Information Commissioner’s Office could take steps against organisations that suffer data breaches following failure to comply with GDPR. Fines levied could reach up to £17.5 million, or four per cent of the organisation’s annual global turnover. In addition to this, GDPR allows victims of a financial data breach to claim compensation for damage, both material and non-material they experience because of a loan company data breach.

Types Of Data Breaches Affecting Lenders

Below we have included some information about data security issues and possible breaches of data.

Easyjet Credit Card Data Hacked 2020

Easyjet admitted in 2020 that there had been a cyberattack that had affected about 9 million customers. According to reports, email addresses and travel details were amongst the data stolen. Perhaps more worryingly, the credit/debit card data of over 2000 was subject to unauthorised access.

Source: https://www.bbc.co.uk/news/technology-52722626

Prestige Software

Prestige Software, a company that provides hotel reservations systems, had been storing credit card data from past clients without protection. It supplied services for Expedia and Booking.com. According to reports, the data included CVV and credit card numbers, reservation information and personal data such as names, addresses and ID numbers.

Source: https://www.independent.co.uk/travel/news-and-advice/expedia-data-breach-hotel-software-prestige-booking-b1720489.html

How can a loan company breach your data?

There are a few different ways in which a loan company could breach or leak your data. They are not all necessarily digital. Some examples include:

  • Lack of sufficient internet security – for instance, the loan company’s security software may not be suitable, or it could be outdated. This can leave their customer’s personal data open to attack by hackers. It is the data controller’s responsibility to make sure their digital security is adequate.
  • Poor training of staff – those working for the loan company may lack the knowledge of how best to protect the personal information of others. Complacency and inexperience can lead to data being unlawfully accessed, distributed or destroyed.
  • Loss of a device – sometimes, personal information can be stored on a smartphone, pen drive, laptop, or tablet. If so, their whereabouts must be monitored, as well as their level of security. For example, having the device password-protected can help reduce the risk of the information being accessed. Alternatively, the device may be lost altogether and fall into the hands of someone who is unauthorised. 

Do I Need To Report My Lender To The ICO?

You do not necessarily have to report the lender to the Information Commissioner’s Office to make a claim for a loan company data breach. You could approach the company directly, first, to complain about the data breach and ask for compensation. If the loan company doesn’t respond to your request or doesn’t respond to your satisfaction, you could choose to report the breach to the ICO.

If you want to report a company to the ICO, you should ensure you do so quickly. An ICO investigation may not happen if there is an undue delay in bringing a matter to its attention.

What Data Breach Compensation Could You Be Owed?

GDPR allows those impacted by a data breach to claim compensation for both emotional distress and financial damage.

Material Damage

This could include financial loss caused by someone accessing your bank accounts or making purchases using your credit card details and CVV number.

Non-Material Damage

You could also claim for the non-material damage a loan company data breach causes. This could include psychological effects such as anxiety, depression or stress. The reason claimants could claim for such harm is that legal precedent was set in a case from 2015. In Vidal-Hall and others v Google Inc [2015] – Court of Appeal, claimants were able to claim for mental distress even if no financial harm had occurred. 

Calculate Compensation For A Loan Company Data Breach

Are you wondering how to calculate compensation payouts for data breach claims? If so, you may be surprised to learn that courts and lawyers don’t have a calculator to give them appropriate compensation amounts for a data breach claim.

They assess claims on a case-by-case basis, looking at all the evidence of the claimant’s injuries.  To help them come to an appropriate compensation settlement for emotional distress, they could use a publication called the Judicial College Guidelines. This could help them hone in on a value for the emotional harm a data breach has caused.

How Can I Tell How Much My Injuries Are Worth?

To give you some guidance on potential compensation payouts, we’ve used figures from the Judicial College Guidelines, and input them in the table below.

Edit
Condition Compensation Bracket (Approximate) How Severe
PTSD/Post-traumatic stress disorders £56,180 to £94,470 Severe
Psychological harm (General) £51,460 to £108,620 Severe
PTSD/Post-traumatic stress disorders £21,730 to £56,180 Moderately severe
Psychological harm (General) £17,900 to £51,460 Moderately severe
PTSD/Post-traumatic stress disorders £7,680 to £21,730 Moderate
Psychological harm (General) £5,500 to £17,900 Moderate
PTSD/Post-traumatic stress disorders £3,710 to £7,680 Less severe
Psychological harm (General) £1,440 to £5,500 Less severe

Steps To Take If Affected By A Loan Company Data Breach

If you’ve been impacted by a data breach, and wish to make a data breach compensation claim, you are not legally obliged to use a data breach solicitor to do so. However, having a solicitor on your side could mean that they could investigate your case for you.

Doing all the leg work to ensure it is filed correctly. As once you make a claim you can not go back and ask for more money if you have forgotten something which later comes to light.

If you decide to make a data breach claim it is essential you have evidence to back up what you are saying. This can be in the form of bank statements or other financial documentation when claiming for financial loss.

When claiming for psychological injuries you may need medical evidence. During your claim, you may be invited to a medical assessment. This will be with an independent doctor who can assess your suffering. They will compile a report with their findings.

Get in touch with us today and we can tell you how this medical assessment is arranged. It can be carried out at a medical facility local to you. This way, your travel can be kept to a minimum.

How A Data Breach Solicitor Could Help You

While you don’t have to use a data breach solicitor to make a loan company data breach claim, you may prefer to. Data breach claims could be complex, and banks, building societies and loan companies would have lawyers to deal with such claims who might dispute or refuse your claim. Having a data breach solicitor on your side to fight your corner, using their legal knowledge could make the process less stressful for you. Other benefits could include:

  • Your lawyer could take on all the legal legwork of proving your claim
  • They could make sure you are claiming for all that you are eligible to claim
  • A lawyer could ensure all the evidence is submitted in the correct manner at the correct time
  • They could make sure your claim does not become time-barred by filing court papers before the limitation period ends
  • A lawyer could explain complex terms to you in plain English, so you are kept abreast of developments in your case
  • They could support you if your case goes to court, although many claims conclude without going to court

How To Find The Right Lawyer For You

If you’re looking for a data breach lawyer to assist with a loan company data breach claim, you might discover that there are lots of law firms that could help you. Here at Legal Expert, we believe we could be a great choice. The benefits of choosing us to help with your claim could include:

  • Our free to access legal helpline – one call to our freephone number connects you with one of our expert advisors. They could assess your eligibility to claim with no charge, and no obligation to use our services.
  • Great communication – we will keep you up to date with developments during the claims process
  • Years of experience – we have been providing assistance to claimants in a variety of situations for many years
  • Great reviews – previous claimants have left us glowing feedback on our services, which you can read here
  • No Win No Fee Claims Service – with Legal Expert, you won’t need to pay legal fees until your claim ends and your compensation comes through.

We’d be glad to help you with your loan company data breach claim. We believe our service ticks all the boxes when it comes to our clients’ needs. Why not get in touch to find out more about how we could help you.

No Win No Fee Claims For A Loan Company Data Breach

If you were thinking of starting a claim, you might want to get help from a data breach solicitor. A solicitor could take on the legal legwork of providing your claim, while you concentrate on the future. But what if you don’t want to pay solicitor fees upfront? If this is the case, you might be pleased to learn that with No Win No Fee solicitors, you don’t have to. And better still, you don’t have to pay your solicitor’s fees at all if they don’t get you compensation.

The Conditional Fee Agreement

  • Before our solicitors could work on your case, they’d send you a Conditional Fee Agreement, and ask you to sign and return it. In the agreement document, you’ll find details of a success fee. This is the fee you’d pay your solicitor if they get a compensation settlement for you. It is a small, legally capped fee that is representative of a percentage of your total payout.
  • When you sign and return the agreement, your solicitor will start working on your case. They could build a strong argument for compensation and negotiate a settlement with the liable party. If the liable party disputes your claim, your solicitor could support you through the court to get the compensation you deserve.
  • Once your compensation settlement comes through, your solicitor would deduct the agreed success fee, and you’d benefit from the rest.

What Happens If A No Win No Fee Claim Isn’t Successful?

Should your claim fail, and not bring you any compensation, the success fee would not be payable. Your solicitor would not be able to ask you to cover their costs, either. If you have further questions about No Win No Fee arrangements, please don’t hesitate to get in touch. Or you could take a deeper look at No Win No Fee claims by reading this guide.

Start A Claim For A Loan Company Data Breach

Are you ready to begin a claim for a loan company data breach? Or, do you have further questions about whether you’d be eligible to claim for a loan company’s data breach? Either way, our experts in loans data breach compensation claims would be happy to speak to you. There are several ways to reach us, including:

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Edited By Melissa.

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      Patrick is a Grade A solicitor having qualified in 2005. He's an an expert in accident at work and public liability claims and is currently our head of the EL/PL department. Get in touch today for free to see how we can help you.

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