A married couple completed an application form to open a joint savings account at a bank. The customer services officer told the couple that she would 'get it checked' and carried out a credit check on them both.

The credit check was unfavourable and the couple were told they could not open the account.

In the course of obtaining the credit check, the couple's names, address, dates of birth, occupations and places of employment were given to the credit reference agency. After their visit to the bank, the husband and wife were both contacted at their workplaces by a debt collection agency regarding a dispute they were having about an account.

I noted that the bank did not appear to have obtained any authorisation to carry out the credit check (information privacy principle 2(2)(b)) and I did not consider that a failure to object amounted to an authorisation. I consider that authorisation requires a positive act.

I also pointed out that the disclosure to the credit reference agency of occupations and places of employment did not appear necessary in order to obtain the credit check.

The complaint was settled by a payment to the couple by the bank.

November 1996

Indexing terms: Collecting personal information - Bank - Credit check performed without authorisation - 'Authorisation' defined - Information privacy principle 2(2)(b)

Disclosure of personal information - Bank - Information disclosed to credit reference agency - Disclosure not necessary - Information privacy principle 11