Estimating Compensation For A Credit Score Data Breach Claim

This guide will explore when you may be eligible to make a claim following a credit score data breach. Data controllers will decide on how and why they process your personal data. Also, they can process the data themselves. A data processor can also process data on behalf of the controller. Each of these has a responsibility to protect your personal data. We will explore their responsibilities further in this guide. 

credit score data breach

Credit score data breach claims guide

We’ll also discuss the impact of having your credit score compromised due to a personal data breach. For example, you may have experienced psychological and financial issues. If you have a valid claim, you can seek compensation for these damages as part of the claims process. We will provide further information on data breach compensation in more detail throughout this guide.

Additionally, this guide has explored examples of a data breach involving a credit score to give you an idea of what a valid claim looks like.

For more information, you can get in touch with our team. Our advisors can offer free legal advice and discuss the services our panel of solicitors can offer.

To get in touch, you may:

  • Call 0800 408 7827 
  • Request a call back by filling out our online contact form
  • Speak to our team using our live chat function that pops up on your screen below.

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Guidance On Claiming Compensation After Data Breaches Involving Credit Scores

There is key legislation that protects your personal data. For example, an updated version of the Data Protection Act 2018 and the UK General Data Protection Regulation (UK GDPR) sit alongside each other to set out a data controller and processors responsibilities for protecting your personal data. 

The UK GDPR sets out several principles that they must adhere to when processing personal data. For instance, they must have a lawful basis for processing. This can often include consent but it can vary depending on the purpose for processing. 

If controllers or processors breach data protection law, you might be able to make a credit score data breach claim. However, you must prove that:

  • There was some form of positive wrongful conduct on the part of the data controller or data processor. This can include a failure to take reasonable steps to protect your data.
  • This failure led to a breach of your personal data.
  • The breach caused you to suffer psychological harm or incur financial losses.

Our advisors can verify if you have a valid claim. Call now for a free consultation with no obligation to make a claim with us afterwards. 

What Is A Credit Score Data Breach?

The Information Commissioner’s Office (ICO) investigates organisations or individuals that do not comply with data protection law and may impose penalties on companies that are found to have caused a credit score data breach. 

A data breach is defined as a security incident that affects the confidentiality, integrity and availability of your personal data. For example, your personal data may be lost, altered or destroyed by accident or unlawfully. Furthermore, it could be accessed or disclosed without authorisation. 

Personal data is information that can be used to identify you either directly or when processed in combination with information that can be used to identify you directly. For example:

  • Name
  • Email address
  • Phone number
  • Postal address
  • Car registration number
  • Bank details
  • Credit card details
  • Debit card details

If it’s found that your personal data has been breached, affecting your rights and freedoms, an organisation must report it to the ICO within 72 hours of becoming aware of the breach. The ICO may then investigate the breach. Their findings from the investigation could be used as evidence to support your potential claim.

Our advisors are available to help 24/7. For free legal advice, speak to our team now. Additionally, an advisor may be able to connect you to a solicitor from our panel, but only if you have a valid claim.

Examples Of A Data Breach Involving A Credit Score

A credit score data breach could involve a credit score company failing to adhere to data protection law. For example, they may have failed to keep their cyber security systems up to date leading to ransomware attacks or phishing scams. Alternatively, a breach may occur through human error. 

Examples include:

  • Your credit score report may be emailed to the incorrect email address after a member of staff failed to check it was the right one.
  • A physical file containing your credit score information may have been left in an unlocked filing cabinet leading to someone without authorisation to access it.

Having your credit score information breached could lead to someone gaining access to your identity and bank details. This could lead to someone stealing your identity and taking out loans in your name. As a result, you could experience losses of a financial nature but also mental harm, such as stress and anxiety.

Statistics For Data Breaches 

According to the ICO’s data security incident trends, there were a total of 2,172 cyber and non-cyber security incidents during Quarter 4 of the financial year 2021/22.

Of these, 1,73 occurred in the finance, insurance and credit industry. The nature of the incidents varied but included:

  • Data being emailed to the wrong person
  • Data being posted or faxed to the wrong person
  • A failure to use the BCC function on emails
  • Phishing
  • Ransomware

If a data breach was caused by an organisations failings and you suffered financial loss or psychological harm as a result, you could have grounds to seek compensation.

How Much Could I Get For A Credit Score Data Breach?

A successful credit score data breach claim could result in a settlement that comprises material and non-material damages. Each of these seeks to compensate for the different ways the personal data breach has impacted you.

For example, material damages compensate for the financial losses you have experienced due to the breach. This could include someone stealing your identity and taking loans out in your name which could have a negative impact on your financial situation.

Non-material damages seek to compensate for the psychological harm you experienced due to the breach. For example, stress, anxiety, depression and in some severe cases, post-traumatic stress disorder are considered under this head of claim.

To accurately value how much compensation you could receive, solicitors and other legal professionals can use the Judicial College Guidelines to help them. We have created a table using guideline compensation brackets from the guidelines. However, you should only use these figures as a guide.

InjuryCompensation RangeNotes
Severe Psychiatric Damage Generally £54,830 to £115,730Factors considered for this award include the impact on your relationships with your family and friends.
Moderately Psychiatric Damage Generally£19,070 to £54,830The prognosis is more optimistic than above.
Moderate Psychiatric Damage Generally£5,860 to £19,070A good prognosis and significant improvement.
Less Severe Psychiatric Damage Generally£1,540 to £5,860Daily activities and your ability to sleep is affected.
Severe Post-Traumatic Stress Disorder£59,860 to £100,670Permanent effects may stop you from working at all as well as causing issues with other aspects of your life.
Moderately Severe Post-Traumatic Stress Disorder£23,150 to £59,860Significant disability is likely for the foreseeable future.
Moderate Post-Traumatic Stress Disorder£8,180 to £23,150You will have largely recovered whilst ongoing effects are not too grossly disabling.
Less Severe Post-Traumatic Stress Disorder£3,950 to £8,180The person is expected to make a virtually full recovery within one or two years.

You can claim for any psychological damage independently of financial losses. However, you must ensure you have evidence to support your claim.

Call us to find out how much compensation your data breach claim could be worth.

What Is A No Win No Fee Agreement?

You might wish to hire legal representation but are concerned about the cost. 

However, when you hire a No Win No Fee solicitor to represent you under a Conditional Fee Agreement (CFA), you won’t pay upfront for your solicitor’s services. Additionally, you won’t pay for their services if your claim fails.

If your claim succeeds, a success fee will be charged and deducted from your compensation. This fee is subject to a legal cap.

Our panel of solicitors may offer to represent your claim on this basis, however, you must have a valid case with a chance of success to be eligible.

Ask About Credit Score Data Breach Claims 

If you are wanting to know if you are eligible to work with a No Win No Fee solicitor from our panel, our team could help. They could also discuss your potential credit score data breach claim in more detail. 

To get in touch, you may:

  • Call 0800 408 7827 
  • Request a call back by filling out our online contact form
  • Speak to our team using our live chat function that pops up on your screen below.

Additional Information About A Credit Score Data Breach

We have shared some additional resources that may help you below.

Additionally, we have some other guides you may find helpful.

We hope this guide on making a credit score data breach claim has helped. However, if you need any other information, call our team on the number above. 

Written by Lewis Julius

Edited by Meg Moon