Advice For Loan Company Data Breach Claims

In today’s digital age, data breaches have become increasingly common, and loan companies are no exception. A loan company data breach can result in sensitive information being exposed, such as names, addresses, national insurance numbers, and financial information, leaving customers vulnerable to identity theft and fraud. If you believe your information has been compromised in a loan company data breach, you may be entitled to compensation.

loan company data breachThis guide aims to provide you with advice on loan company data breach claims. It will cover how a loan company data breach can happen, the eligibility criteria for claiming, how to make a No Win No Fee data breach claim, and what damages a person could claim for.

If you have further questions after reading this guidance, or would like to begin a claim, please get in touch. You can reach us:

Why Make A Loan Company Data Breach Claim?

If you have fallen victim to a loan company data breach, you may be wondering whether you could be eligible to make a data breach compensation claim. You may be entitled to do so if the loan company has acted wrongfully and the UK GDPR breach has caused you harm.

The Data Protection Act 2018 sets out regulations on how personal information should be processed and stored. If a loan company has breached these regulations and your information has been exposed, you may have a claim. However, it is essential to note that not all data breaches would result in a claim. For example, if your information was not exposed and the breach did not cause you harm, you would not generally be eligible to claim.

Can I Claim?

There are several reasons why you might want to make a claim for a loan company data breach. Firstly, you may have suffered financial losses as a result of the breach. For example, if your bank account was hacked and money was stolen, you could claim for this loss. Additionally, if you have had to pay for identity theft protection or monitoring services, you may be able to claim back these costs.

Secondly, you may have suffered non-financial damages, such as emotional distress after a data breach, anxiety or reputational harm. If you have been the victim of fraud or identity theft, this can be a traumatic experience that can have a lasting impact on your mental health.

To be eligible to claim, you will need to prove that the loan company acted wrongfully. Plus, that the breach caused you harm. It could be useful to seek the advice of a legal professional who can help you go through the process of making a claim. This way, you could give yourself the best chance of receiving the compensation you deserve for the harm you’ve suffered.

How Long Do I Have To Claim For A Loan Company Data Breach?

Under the Limitation Act 1980, the period for making a claim for a loan company data breach is generally six years from the date of the breach. This means that you could have around six years from the date of the breach to begin taking legal action against the loan company.

However, this six-year limitation period is subject to certain exceptions. For example, if the data breach occurred when you were under the age of 18, the limitation period would not usually begin until your 18th birthday. Additionally, if the breach was hidden by the loan company and you were not aware of it, the limitation period may not begin until you became aware of the breach.

Examples Of Loan Company Data Breaches

The Information Commissioner’s Office (ICO) is the UK’s independent regulator for data protection. It is responsible for investigating data breaches and enforcing the laws relating to data protection. The ICO has made several investigations into loan company data breaches. These include the following examples.

A data breach occurred at a loan company called Wonga in 2017. It impacted 245,000 customers in the UK. The breach resulted from a cyber attack. However, Wonga received criticism as it was thought to have failed to take adequate measures to protect its customers’ data.

Another data breach occurred at Carphone Warehouse in 2018. 3 million customers were affected, and the data that was compromised included bank details. Again, the breach was a result of a cyber attack. However, that attack was against a third-party company that Carphone Warehouse used for data management. Carphone Warehouse was fined £400,000 for the breach, for failures in their security arrangements.

What Evidence Do I Need For A Data Breach Claim?

If you are considering claiming compensation for a loan company data protection breach, you will need evidence to support your claim.

Evidence will be needed to show that a data breach occurred. Examples of this type of evidence could include correspondence from the loan company that acknowledges the breach or advises you to take action to protect your personal information. It may also include evidence of any unauthorised activity on your account.

You will also need to provide evidence of the harm that the data breach has caused you. This may include evidence of financial losses, such as bank statements or invoices for services you had to pay for to mitigate the harm caused by the breach. It may also include evidence of any emotional distress or psychological harm that you have suffered as a result of the breach, such as medical records or statements from mental health professionals.

Thirdly, you will need evidence to demonstrate that the loan company acted wrongfully or negligently, and that their actions or omissions led to the breach. This may include evidence of any failures in their security or data protection practices, such as internal documents or statements from employees.

What Damages Could Be Awarded In A Successful Data Breach Claim?

In general, there are two types of damages that you may be able to claim for in a loan company data breach case: financial losses and non-financial losses.

Financial losses may include things like lost income, expenses incurred as a result of the breach (e.g. credit monitoring services), and any costs associated with restoring your credit rating. These losses can be quantified and calculated, and the amount of compensation awarded will depend on the specific financial losses that you have suffered.

Non-financial losses may include things like emotional distress, anxiety, and other psychological harm. These types of losses are more difficult to quantify, but can still be compensated through an award of damages. The amount of compensation awarded for non-financial losses will depend on the severity of the harm suffered.

It is difficult to provide a specific figure for how much data breach compensation you may be entitled to, as each case will be unique.

Examples Of Non-Material Damages Payouts

However, we can look at the Judicial College Guidelines for some insight into psychological injury compensation brackets. This publication provides insight into past awards for cases in England and Wales for a range of injuries. The list below contains figures from the 2022 edition of the guidelines. Please note, however, this is only rough guidance. If you would like to find out how much could be appropriate for your claim, please call an advisor.

  • Severe psychological harm – £54,830 to £115,730  
  • Moderately Severe psychological harm- £19,070 to £54,830
  • Moderate psychological harm- £5,860 to £19,070
  • Less Severe psychological harm- £1,540 to £5,860

Start A No Win No Fee Loan Company Data Breach Claim Today

We’re here to help those who have been affected by such incidents. Our panel of data breach solicitors could take on your case without any upfront fees. You only pay for their work if your case results in compensation. They operate under a Conditional Fee Agreement (CFA), which sets out the terms of the No Win No Fee agreement, including the capped percentage of compensation (in accordance with the Conditional Fee Agreements Order 2013) they receive upon success.

If you’ve been the victim of a data breach and want to make a claim, don’t hesitate to get in touch. Our advisors are on hand to help you determine if you’re eligible for a claim under a CFA. Contact us today in any of the following ways:

Further Insight Into Data Breach Compensation Claims

Below, you’ll find some further guidance on making a data breach claim for a loan company data breach, as well as other general guidance.

Carphone Warehouse Data Breach – You can find details of the data breach on the ICO website.

Data Breach Statistics – You can find data related to security incidents here.

Report A Data Breach – The ICO provides guidance here

Bank Data Breach – If a bank has breached your data, this guide could be useful to you.

Wage Data Breach – Should an employer breach wage data, our guide could provide insight into claiming compensation. 

Data Breach FAQ – You’ll be able to see answers to common questions about data breach claims by reading this guide.