The bank's plans to outsource call centre jobs to India has been challenged on the grounds of infringement of the Data Protection Act.
An individual Llloyds TSB customer has asked the Information Commissioner to adjudicate on whether the bank is infringing DPA legislation by trasnferring data out of the EU borders.
The financial services sector has been outsourcing thousands of jobs to India, China and the Far East where wages and overheads are a fraction of those in the UK and this represents an important challenge to the trend.
The case rests on the fact that sensitive personal data can only be transferred outside the EU with the pemission of the client. Bindmans - the law firm bringing the challenge - asserts that this consent must be in writing.
The judgement from the Information Commissioner , which could have wide ranging implication for the entire financial services industry, is expected in September.
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