14 DAY TRIAL // The United Kingdom’s Information Commissioner’s Office has prosecuted payday loans company First Financial and its director, Hamed Shabani, for failing to register that the organization is processing personal information.
All businesses that process personal information are required to do so under the Data Protection Act. Failure to register is considered a criminal offense and can result in fines of up to £5,000 ($8,000 / €5,900).
For failing to register, Shabani has been fined with £150 ($240 / €177). He has also been ordered to pay a £20 ($32 / €24) victims’ surcharge and £1,010.66 ($1,623 / €1,196) for prosecution costs.
In addition, First Financial has been fined with £500 ($800 / €590) and ordered to pay £1,010.66 ($1,623 / €1,196) for prosecution costs. The victims’ surcharge that the company must pay is £50 ($80 / €59).
The director was convicted under section 61 of the Data Protection Act, while the company was convicted under section 17 of the same act.
Interestingly, according to the ICO, Shabani attempted to avoid prosecution by removing his name from the company’s registration at Companies House.
“Failure to register is not only a criminal offence, but also shows that a company holds a clear disregard for looking after and protecting the personal information of their customers,” ICO Head of Enforcement Stephen Eckersley stated.
“Pay day loans companies hold important information about some of the most financially vulnerable people in the UK. This makes this company and its director’s decision not to face up to their legal responsibilities all the more concerning,” he added.
“Businesses must commit to looking after the information of their customers and this begins with making sure that they are registered. We will continue to use our enforcement powers to safeguard people’s information.”