Banks and ICO Regulations

Affinity has raised an issue that affects members across the banking industry with the Information Commissioner’s Office. Whilst this particular concern related too Lloyds Banking Group it has implications industry-wide. The ICO has confirmed to the union that customers do need to be informed if telephone calls are being recorded by the bank regardless of the reasons for those recordings. It falls under ‘Principle (a): Lawfulness, fairness and transparency’. If the bank doesn’t change its policy immediately, we will make a formal referral to the ICO.

Mortgage and Protection Advisers have vented their anger at the bank’s new guidance on recording calls in LMM conference calls held up and down the country over the last few days. The bank can be in no doubt that MaPAs don’t want to be put in the position of deceiving customers and breaching GDPR Regulations. The argument is a simple one: if the bank thinks it’s important to record all telephone conversations then customers have a right to know that is what’s happening. To withhold that information from customers is a fundamental breach of trust and customers would be rightfully angry if they found out what was happening.

The type of conversations that will be recorded but which customers will not be advised about include:

• General conversations including post recommendation changes and customer detail changes.

• Progression to full mortgage application.

• Progression of insurance being placed on risk.

• Product withdrawal

• Post completion enquiries

• Financial sales conversations (including leaving messages where the customer does not answer)

• Online leads

• Introductory calls.

Why the bank should want to record all these telephone calls but not tell customers is still not clear? If the information from the calls is not important, then why record them in the first place? If the information is important, then customers have a right to be told they’re being recorded.

Lloyds and any other employers in breach of the requirements need to get a grip of this issue.

Members with any questions on this should contact the Union’s Advice Team on 01234 716005 (choose Option 1).