Questions of Cash – July 2013

Q. I recently opened an online saver account linked to my current account and Visa debit card. To verify the transaction I was asked three security questions.  These were: which of these phone numbers have you had; which of these addresses have you lived at; and the last, which horrified me, was in which age range is your daughter – and then they gave me her first name and middle initial.  I am outraged that this information is known by the financial services companies and used by them.  It feels as though Big Brother really exists.  I phoned Verified by Visa to complain, who said the security questions were generated by the credit reference agency Equifax. I phoned Equifax, who said they only used information supplied by my bank. I phoned my bank who said they have nothing to do with it and it is down to Equifax.  I would like to know whether Equifax stores all this information about me or just accesses it from a source.  How do they know details about my daughter?  Can I veto their use of this?  Where can I complain about this intrusion into my privacy and get my daughter’s name removed from these files?  JN, Surrey.


A. This information is obtained from the electoral register.  You removed your family’s details from the publicly available version, but credit reference agencies have access to another version on which those details are retained.  They are permitted to access the full version under anti money laundering legislation.  A spokeswoman for Equifax explains: “Equifax holds the information to be able to provide it to lenders. Any information Equifax holds that is supplied by third parties has been provided on the basis of prior notification, or according to regulation. Consumers do have the right to see what data is held about them and are able to query it.”  The background to this is that since 2002 there have been two versions of electoral registers: one is called the full register and the other the edited register.  Individuals can opt out of the edited register, but not out of the full register.  Personal details such as full names and addresses – and, for those coming up their 18th birthday, the date on which they will be 18 – are shown on the full register.  This information is not normally available to commercial organisations for individuals who have opted out of the full register.  However, the full register can be used by financial services businesses for anti money laundering purposes.  It was in accordance with this that Equifax provided information on your personal history and family details to your bank for its security checks.  The use of personal information is regulated by the Information Commissioner, whose office confirmed that the information provided to us by Equifax is correct.  A spokesman added: “The Data Protection Act does not prevent credit reference agencies from accessing the Full Electoral Register for limited purposes – including anti money laundering and vetting applications for credit.”  As a goodwill gesture Equifax is offering you a free copy of your credit report.  You remain unhappy and you have a right to complain to the Financial Ombudsman Service.  However, Equifax and your bank operated in line with the legislation, so it is difficult to see what you could achieve by lodging a complaint.


Q.  I changed gas and electricity supplier from Npower to Co-operative Energy on 15 January. I received a statement of account from Npower stating that it owed me £466.36 for electricity, but it will not refund this until the gas account is finalised.  I have phoned Npower repeatedly since January and was eventually told in April that there was a dispute over the final gas reading. I had not been made aware of this.  I have provided the current reading by phone and e-mail. I then was given a complaint number at the beginning of May. In spite of phoning three times since then, the matter has not progressed. I understand they have a further eight weeks to resolve this before I can take action through the ombudsman.  I have been complaining to Npower since February. PL, Sheffield.

A.  Npower says that the reading that was originally proposed as a final reading for your transfer of gas supplies was disputed and a new meter reading was required.  Given the time that had elapsed already prior to us taking the matter up with Npower, the dispute was escalated when we contacted the company.  A new reading was then agreed between the two suppliers.  This left a balance owing to you of a much smaller amount of £180.43.  This has now been paid to you by Npower, along with a goodwill payment of £50 “as a gesture of goodwill for the level of service you have received”.


Q.  I have had a Tesco Bonus Credit Card since 2010. My main reason for holding the card was to accumulate points in Tesco’s loyalty scheme. During 2012 I realised that my Clubcard number was not accumulating points, despite me spending several thousands of pounds on the card. I have been in communication with Tesco over this since December last year, making phone calls and being in a long email correspondence, but I have got nowhere.  The Clubcard people keep referring me to the credit card division of Tesco Bank and they are playing pass the parcel with me.  Eventually the customer service department sorted out the current problem and points are now being awarded to my card, but it seems that Tesco is incapable of awarding me the backdated points that I missed out on over the last few years.  I feel cheated.  PM, by email.


A.  The problem, it seems, is about Tesco’s management of one of its databases, but the problem has now been resolved.  A spokesman for Tesco says: “On this occasion we did not meet our high standards of customer service. We have apologised to [the reader], backdated his Clubcard points and have taken steps to ensure this doesn’t happen again.”

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