Financial data protection
Deputy Ó Caoláin raises concerns about financial institutions selling customers’ loan books and personal data, including to providers outside Ireland. The Tánaiste says data protection is important, legislative preparation has begun following consultation, and legislation is expected next year.
On the matter of data protection, the Tánaiste will be aware of the practice in recent years, with significant changes in respect of some of the financial institutions and some ceasing to function-----
Comment on this
The Tánaiste is aware that, in recent years, with some financial institutions closing their doors and others ceasing to perform in given areas - for example, mortgages and other lending practices - they have sold, for want of a better description, their loan books or aspects thereof to other financial service providers, including some outside the jurisdiction. There is significant concern among citizens who, having gone to high street financial institutions in years past, provided all of their relevant information and data and legitimately secured their loan applications or mortgages, as the case may be. Considerable data - information on the individuals and their families - were provided to the financial institutions, but now, years later, all of that information is in the hands of other financial institutions, including some that are not registered in this State but are functioning in Ireland in a limited way and have control over the loans in question, including mortgages. This is significantly problematic.
Comment on this
Yes, No. 64, the data sharing and governance Bill, from the Department of Public Expenditure and Reform. The Tánaiste has a particular interest in matters fiscal. We formerly served together on one of the Oireachtas committees in this regard. I am anxious to hear her view on this issue. Have these matters been brought to her attention? Can she give us some sense of the Government's awareness of the practice? I have gone through all of the promised legislation, and this Bill, which is due for publication next year, is the only one that appears to be a fit. I am not sure that it is a neat fit, but I am anxious to know whether it would address this matter. Does the Tánaiste agree that there should be a tightening of the situation, in that data held on citizens and their families by financial institutions should not be readily available for sale on the open market?
Comment on this
Data protection is important to everyone in Ireland. Financial data are some of the most sensitive data that are held on individuals, families and businesses. There was a public consultation, now completed, on the proposed legislative changes. There was also a policy paper. The preparation of legislation would be the next step. I understand that this has commenced, but it will be next year before we see any legislation.
The Central Bank has an overriding supervisory power in respect of financial organisations. As such, the data of customers of various financial institutions or whose loans may be in transition are a matter for the Central Bank. The early stages of the legislation to which the Deputy referred are complete, but I do not anticipate that it will be before the Dáil before next year. In the meantime, the Central Bank has a mandate to oversee the regulation of the types of loan in question, namely, those that are sold on to other entities.