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ARTICLE · 27 AUGUST 2014

Data Privacy Update. August 2014

New trends of personal data protection in credit relations while transferring debt information to the third parties.

UkrainePrivacy

New trends of personal data protection in credit relations while transferring debt information to the third parties.

Seeking protection of personal data was and remains one of the most widespread arguments of the borrowers – individuals, who consider the transfer of debt-related information to debt collectors to be devoid of substance. The recent court practice evidences that challenging the transfer of personal data transfer to the third party by the borrowers may be successful even without applying the Personal Data Protection Law. Furthermore, bank's actions concerning such transfer of personal data may be qualified as unfair business practice.

Specifically, at the end of July, this year the Court of Appeal upheld the ruling of the first instance court and declared illegal the transfer of personal data of the Borrower (defendant) to the debt collector by the Bank (respondent). In particular, the Bank transferred the data on address and debt of the Borrower.

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