UK bank faces legal action over data protection
(24 August 2004 – UK) British bank Lloyds TSB’s staff union has told the bank it will breach the Data Protection Act if it outsources call centre jobs to India.
The union said it is supporting legal action mounted by one of the bank’s customers if Lloyds TSB pursues its plan to cut about a thousand jobs from its Newcastle call centre and transfer them to India.
The bank has been told that shifting personal financial data to locations outside of the European Union runs counter to European regulations and that doing so requires the express consent of customers.
The UK government’s Information Officer will announce whether the union has a case or not in the next few weeks.
The union said the challenge could have huge implications for the banking and financial services industry.
Earlier in the year HSBC announced it would move 4000 back office jobs to Malaysia, India and China over the next three years.
The bank has been told that shifting personal financial data to locations outside of the European Union runs counter to European regulations and that doing so requires the express consent of customers.
The UK government’s Information Officer will announce whether the union has a case or not in the next few weeks.
The union said the challenge could have huge implications for the banking and financial services industry.
Earlier in the year HSBC announced it would move 4000 back office jobs to Malaysia, India and China over the next three years.
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