Payouts For Debt And Arrears Data Breach Claims

This guide will look at the payouts you could receive following a successful debt and arrears data breach claim. You may be wondering whether your eligible to seek compensation after a personal data breach. If so, this guide could help by exploring the criteria your claim must meet in order to be valid. 

debt and arrears data breach

Debt and arrears data breach claims guide

We’ll go through examples of a data breach that may involve your debt and arrears information. This could help you understand whether you’re eligible to launch a personal data breach claim

Furthermore, we’ll discuss the benefits of using a No Win No Fee solicitor from our panel to process your claim.

We’ve also included information on data breach compensation to help you work out an estimate of what you might receive. You may wish to use a data breach compensation calculator, but they aren’t always reliable. Our team can provide a more accurate estimate of how much your claim is worth.

Our team is friendly and can offer you a free telephone consultation with no obligation to make a claim with us after using our services. However, if you do work with a data breach solicitor from our panel, they will be able to offer their services on a No Win No Fee basis.

You can get in touch with us 24/7 via the following methods:

  • Online form: Fill out our online contact form to request a call back
  • Telephone: Call us on 0800 408 7827 
  • Live chat: Speak to an advisor using our live chat feature.

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Guidance On Claiming Compensation After Data Breaches Involving Debt And Arrears

In the UK, there is key legislation that sets out the responsibility data controllers and data processors have to protect your personal data.

A data controller decides the purpose of collecting and using data. They can also process data themselves. A data processor is responsible for processing data on behalf of the controller.

Each of these have a responsibility to adhere to data protection laws, including the UK General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (DPA). The DPA was updated after the United Kingdom left the European Union.

If an organisation using or processing data fails to uphold their responsibilities as set out in data protection law, causing a debt and arrears data breach to occur, you might be able to claim. However, you will need to have suffered psychological harm or financial damage as a direct result of your personal data being breached.

For more information, call our team.

What Is A Debt And Arrears Data Breach?

According to the Information Commissioner’s Office (ICO), a data breach is a security incident that compromises the confidentiality, integrity and availability of an individual’s personal data. The ICO is an independent authority that upholds the rights and freedoms of a data subject.

A debt and arrears data breach may involve information regarding your credit file and credit history and could lead to this data being lost, stolen, accessed or tampered with, either purposely or accidentally.

Personal data is any information that may identify a person, for example a name, address or IP address. Some data is considered more sensitive and requires extra protection, such as special category data. This includes data concerning your health, such as medical conditions you have.

Financial information could include credit or debit card information or your bank details. In some cases, this information could be processed alongside other data that could be used to identify you.

If personal data relating to your finances is compromised in a data breach causing you financial damage or psychological harm, call our team to find out whether you’re eligible to claim.

Examples Of A Data Breach Involving Debt And Arrears

Below, we have provided examples of data breaches involving your debt and arrears.

  • A debt company may fail to have adequate security measures in place, making them more susceptible to a cyber attack. As a result, your personal data relating to your finances may have been compromised in a cyber attack.
  • An email containing part of your bank details may have been sent to the wrong recipient because an employee failed to double check your email address before clicking send.
  • If you inform a debt company that are you are moving home, but the company fails to update your address, letters containing your personal information may be sent to the wrong person.

Please note, not all data breaches result in claims being made. In order to hold a valid data breach claim, you must prove that an organisations failings resulted in your personal data being compromised causing you psychological harm or damage to your finances.

ICO Stats For Data Breaches

In the latest data security incident trends reported by the ICO, the finance, insurance and credit sector was affected by 173 incidents, including cyber and non-cyber. Examples of these included:

  • Data emailed to the incorrect recipient (35)
  • Data posted or faxed to the wrong person (29)
  • Ransomware (20)
  • Unauthorised access (16)
  • Phishing (14)

If you think you have been affected by a data breach, get in touch to find out if you are eligible to claim.

How Much Could I Get For A Debt And Arrears Data Breach?

When working out data breach compensation in the UK for a debt and arrears data breach, it is important for you to understand what you might claim for.

Each settlement may comprise material and non-material damages. Material damages provides compensation for the financial losses you experienced as a result of the personal data breach. For example, if your identity was stolen and you incurred credit card debt as a result, you could claim back these losses.

Non-material damages provides compensation for the psychological harm you suffered as a result of the personal data breach. This could include, stress, anxiety and post-traumatic stress disorder.

Previously, you could only claim for any mental harm if you had suffered financial damage. However, in the Vidal-Hall and others v Google Inc (2015), the Court of Appeal ruled that you may now claim for psychological injuries, without having to have suffered any financial impact.

Legal professionals use the Judicial College Guidelines to value compensation for psychological injuries, such as anxiety. The document features compensation amounts based on previous court rulings in personal injury cases. 

Therefore, we are able to take compensation ranges from the 16th edition of the JCG to create the table below. Please remember that the figures below are simply estimations and do not represent the actual data breach compensation amount you may receive.

InjuryCompensation RangeNotes
Severe Psychological Damage (a)£54,830 to £115,730The prognosis for severe cases is very poor.
Moderately Severe Psychological Damage (b)£19,070 to £54,830Cases in this bracket will have a more optimistic prognosis.
Moderate Psychological Damage (c)£5,860 to £19,070Cases in this bracket will have shown some significant improvement and have a good prognosis.
Less Severe Psychological Damage (d)£1,540 to £5,860The award may differ depending the extent and length of time someone suffered.
Severe Anxiety Disorder (a)£59,860 to £100,670There will be a permanent impact on the person that prevents them from functioning at the same level as pre-trauma.
Moderately Anxiety Disorder (b)£23,150 to £59,860Professional help could improve the prognosis.
Moderate Anxiety Disorder (c)£8,180 to £23,150Symptoms may persist, however the person will have mostly recovered.
Less Severe Anxiety Disorder (d)£3,950 to £8,180Within a year or two, the person will have largely recovered.

To find out more about data breach compensation, including evidence used to calculate the value of your claim, call our team. They can also offer further guidance on making a claim following a debt and arrears data breach that compromised your personal data.

Benefits Of No Win No Fee Agreements

The solicitors from our panel offer to represent claims under a type of No Win No Fee agreement, known as a Conditional Fee Agreement. The benefits of this type of agreement, include:

  • Not having to pay your solicitor for their services if the claim fails
  • Not having to pay upfront fees or ongoing costs for the services they provide you

If your claim succeeds, you will need to pay a success fee. This comes from your compensation. However, it is legally capped. Furthermore, the details of the fee will be outlined in more detail in the agreement you sign with your solicitor.

Ask About Debt And Arrears Data Breach Claims 

Our team of advisors offer free legal advice 24/7. If you would like for us to arrange a free consultation, you can use the following details to get in touch:

  • Online form: Fill out our online contact form to request a call back
  • Telephone: Call us on 0800 408 7827 
  • Live chat: Speak to an advisor using our live chat feature.

Additional Information About A Debt And Arrears Data Breach

Before we conclude our guide, you might be interested in some additional resources.

We hope this guide has provided more information on making a debt and arrears data breach claim. Get in touch if you have any additional questions.