If you can show that your personal data has been compromised as part of a credit score data breach, you could be eligible to start a claim for compensation. It can cause psychological harm when an unauthorised person has access to your identifiable information paired with your financial details. However, we have created this guide to help you understand how credit score data breach claims could be made with a skilled data breach solicitor from our panel.
Key Takeaways
- A data breach could occur when personal data has not been handled in accordance with UK law.
- You could have grounds to submit a claim if you can prove that a company failed to uphold data breach laws, allowing your data to become compromised and causing you mental or financial harm.
- The law does not protect financial data. However, financial information is often paired with personal data, which is legally protected.
- A breach of data may occur due to malicious intent or human error.
- You may receive compensation for your psychological suffering and the costs incurred, such as loss of income.
- You could be eligible to start a claim with an experienced solicitor from our panel on a No Win No Fee basis.
You can make an enquiry through our compassionate team of data breach advisors anytime:
- Chat with us using the live pop-up feature on this page
- Contact us online
- Call us on 020 8050 3051
Jump To A Section
- What Is A Credit Score Data Breach?
- Making A Personal Data Breach Claim
- Is Financial Data Classified As Personal Data?
- How Could A Data Breach Happen?
- How Much Compensation For Credit Score Data Breach Claims?
- Can I Make Credit Score Data Breach Claims With A Solicitor?
- More Information
What Is A Credit Score Data Breach?
A credit score refers to a three-digit number created by credit reference agencies to show the likelihood that you will pay back the money you borrow. They base it on your previous management of your finances and usage of credit.
Personal data refers to any data that someone could use as an identifier. Examples include your:
- Name
- Postal address
- Personal phone number
When you give your credit information to an organisation, it is typically paired with personal data. Therefore, your personal information may be breached as part of a credit score breach.
A personal data breach refers to an incident impacting the confidentiality, availability or integrity of personal data. We provide examples of when this may occur in a later section, which may assist with your understanding.
What Is The Information Commissioner’s Office?
The Information Commissioner’s Office (ICO) is an independent public body that upholds the data protection rights of UK residents. Affected UK consumers can report their data breach to the ICO, and they may investigate the circumstances of the breach. They also may impose penalties on organisations that have not processed or controlled data in alignment with data protection law.
The ICO defines a data breach as an incident whereby data is accidentally or unlawfully:
- Altered
- Lost
- Destroyed
- Disclosed or accessed by an unauthorised party
We understand that these concepts can seem complicated when you first encounter them. Contact our advisors today with any questions you have about claiming compensation for a data breach.
Making A Personal Data Breach Claim
To begin a valid claim for data breach compensation, you must be able to prove that:
- An organisation did not adhere to data protection law (We cover this in the next section)
- This caused the data breach, which included your personal data
- As a result, you suffered a psychological injury, financial losses, or a combination of the two
What Is The UK GDPR?
UK General Data Protection Regulation (UKGDPR) is a law that protects the data of UK citizens. It outlines the data protection principles, which mean that data must be:
- Kept up-to-date and accurate
- Used in a way that is fair, lawful and transparent
- Used with accountability
- Not stored for an unnecessarily long amount of time
- Handled in a confidential manner
- Used minimally and with purpose
It sits alongside the Data Protection Act 2018 (DPA) as data protection laws. If you can prove that you suffered financial or mental harm due to a breach of your personal data caused by an organisation failing to adhere to data protection laws, you could be eligible for compensation.
Contact our advisors to see whether you may have an eligible case or to ask any questions about credit score data breach claims.
Is Financial Data Classified As Personal Data?
Although it is sensitive information, your financial data alone is not classed as legally protected personal data. It is unlikely that someone could guess your identity due to a breach involving only a credit score.
However, you typically give personal data when you are providing your financial information to an organisation. Therefore, the breach of financial data often compromises personal data, which is protected by law.
You can speak with our advisors if you feel unsure of the different types of data. They can explain what qualifies you for a personal data breach claim and outline how a No Win No Fee solicitor from our panel could help you start a compensation claim.
How Could A Data Breach Happen?
There are many incidents of data breaches whereby you could meet the eligibility criteria to claim compensation if they cause you to suffer psychological harm. These include:
- A mortgage broker stores your credit information in their online system. However, they do not install regular software updates to the cyber protection systems in place. This allows a cybercriminal to access the system and take the data.
- Your bank keeps a record of your credit history as you are applying for a mortgage. A bank employee accidentally sends a letter containing these details to an address that is different to the one you have given them. This means that an unauthorised person has access to your data.
- A credit reference agency stores your credit report in their online database. An employee of the company opens a phishing email and downloads a virus onto the computer by mistake. This allows identity thieves to steal the data from your file.
- A loan company accidentally destroys your financial records, including your credit score and personal data.
A data breach is not always the result of malicious intent. Human error means that a breach may occur due to someone’s mistake or a non-cyber security incident.
Contact our advisors to learn more about other incidents that could lead to credit score data breach claims.
How Much Compensation For Credit Score Data Breach Claims?
You may be wondering, ‘How much could be awarded for credit score data breach claims?’. This depends upon the varied circumstances of your claim.
Firstly, you could claim compensation for non-material damage. This refers to the mental harm that arose due to the data breach.
In the table below, we have included some figures from the Judicial College Guidelines (JCG). This is a document which pairs compensation guidelines with varied types and severities of physical and psychological injuries. This document may be referred to when your non-material damage is being valued.
Please note that the figures we have included do not guarantee the amount of compensation you could be awarded. The JCG also did not provide the first figure included in the table below.
| Type of Injury | Severity | Compensation Figures | Notes |
|---|---|---|---|
| Severe psychological harm with the associated financial costs | Severe | Up to £500,000+ | Severe psychological injury with financial impact, such as the cost of relocating your home and lost earnings. |
| Psychiatric damage generally | Severe | £66,920 to £141,240 | Compensation will account for factors such as effect on the person's relationships and how good the prognosis is |
| Moderately severe | £23,270 to £66,920 | Better prognosis than severe cases with assessment of factors such as success of treatment | |
| Moderate | £7,150 to £23,270 | Positive prognosis and improvement of symptoms | |
| Less severe | £1,880 to £7,150 | Compensation considers amount of time person suffered disability, the impact on sleep and whether claimant could complete daily activities | |
| Post-Traumatic stress Disorder | Severe | £73,050 to £122,850 | Permanent impact whereby the injured person cannot function as they did pre-trauma |
| Moderately severe | £28,250 to £73,050 | Improved prognosis compared to severe cases but likely to experience long-term disability | |
| Moderate | £9,980 to £28,250 | Mostly recovered from injury and effects will not result in severe disability | |
| Less severe | £4,820 to £9,980 | Near full recover made within one to two years |
Material Damage Compensation
You could also receive compensation for your material damage as part of your compensation claim. This could include financial losses relating to:
- Lost earnings/income due to time taken off work to recover from your psychological injury
- Relocation to a different postal address
- Payments made for psychological treatment, such as therapy
Evidence will need to be provided of your material damage with documents such as invoices, payslips and bank statements.
Contact our advisors for more information about what your data breach compensation could cover. They can also determine your eligibility to start your data breach claim with an expert solicitor from our panel.
Can I Make Credit Score Data Breach Claims With A Solicitor?
If eligible, you may be able to proceed with your claim with a solicitor from our panel. Additionally, they could work with you under a Conditional Fee Agreement (CFA). This works on a No Win No Fee basis, meaning that you would not have to pay fees for the work your solicitor has done on your case:
- Before your data breach claim starts
- While the claim is underway
- If you do not receive compensation
However, if you successfully gain data breach compensation, you will then need to pay a success fee. This is a percentage of the compensation taken directly by your solicitor. There is a legally enforced cap in place to ensure that you retain the largest share of the compensation for yourself.
Our panel of solicitors works with cyber specialists to ensure that they approach data breach claims with knowledge and expertise. Contact our advisors if you would like a free assessment:
- Chat with an advisor using the live pop-up feature on this page
- Call us on 020 8050 3051
- Contact us online
More Information
Read our other data breach guides:
- Learn how to claim if a landlord has breached your data
- Find out about claiming medical data breach compensation
- Visit our guide for social media data breaches
Further resources:
- Check out the guidance for individuals and families impacted by data breaches supplied by the National Cyber Security Centre (NCSC)
- Follow the NHS advice for dealing with stress
- Find out how to complain to the ICO
Thank you for reading our guide on how to make a credit score data breach claims.
