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Lloyds TSB Accused Of Data Protection Act Breach Over Outsourcing

by Robin Pilgrim, LawAndTax-News.com, London

20 August 2004

According to reports in the national media, an unnamed Lloyds TSB customer has asked the UK's Information Commissioner, Richard Thomas to rule on whether the bank is breaching the Data Protection Act with its plans to outsource its call centre operations to India, unveiled last October.

The customer, supported by the Lloyds TSB Union (LTU) has argued that the bank is breaching the Act by failing to ask customers for their explicit written consent before transferring sensitive information outside the EU.

Speaking to Reuters on Wednesday, an LTU spokesman observed that:

"If the Information Commissioner rules in our favour, all financial institutions will have a major battle on their hands."

Mr Thomas is expected to deliver his verdict in the next few weeks.

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