Renowned human rights firm Bindman & Partners is advising Lloyds TSB’s workers’ union on its legal attack on the bank’s offshore outsourcing, which could threaten the future of the practice.
The claimants allege that Lloyds TSB is exporting its clients’ sensitive personal data to India, which does not have the same stringent standards of protection for sensitive data as those required by the UK’s Data Protection Act. India does not have a data protection act, but a bill is awaiting approval.
Lloyds TSB will fight the claim. Outsourcing specialist Kit Burden of Barlow Lyde & Gilbert said: “While the tactic is a good one from the point of view of the union, I’d be amazed if the Lloyds TSB contract did not allow for overseas transfer of data.”
The National Outsourcing Association was quick to point out that transferring sensitive data outside of the European Economic Area is fine as long as the supplier signs up to the same standards as those in the act.
A spokesperson for Lloyds TSB said: “These concerns are completely unfounded and unnecessarily alarmist.”