Experian and benefit fraud

[Nicholas Bohm]

 On 11/08/2010 17:37, Roland Perry wrote:
> In article <4C628114.2060206 at andros.org.uk>, Andrew McLean
> <lists at andros.org.uk> writes
>> I think my main concern about the latest proposal is information
>> leakage to the Credit Reference agencies. Even if they don't directly
>> exploit the information they are provided in order to carry out this
>> exercise, might they be able to exploit "derived data"?
>
> If they were allowed to, it might be tempting for agencies to reveal
> to their lender-clients that a person had fallen on hard times.
> Arguably those persons ought to tell the lenders this anyway (in some
> sort of "utmost good faith" sense), but there are some transparency
> issues.

Borrowers don't have any general law disclosure obligation to their
lenders (loan agreements, unlike insurance ones, are not "utmost good
faith"); but some will have contractual duties under their loan agreements.

However, the fact that you may owe a contractual duty of disclosure to a
lender is no justification in law for a third party breaking a duty of
confidence owed to you for the purpose of making the disclosure you
ought to make, since the third party is a stranger to the contract.

Nicholas
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