Lloyds TSB union sues bank over offshore outsourcing

18 Aug 2004

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An unnamed Lloyds TSB customer, back by the bank's internal union, yesterday launched a legal challenge against the firm's plans to outsource call centre jobs to India, on the grounds that it breaches the data protection act (DPA).

The Lloyds TSB Union (LTU) claims the bank is breaching the DPA by transferring customer's financial data outside the European Economic Area (EEA) without their written consent.

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Richard Thomas, the Information Commissioner, is expected to rule on the case in the next few weeks - in what will be a key ruling for the industry.

Last October, the bank announced that it was closing its Newcastle-based call centre, with the loss of near 1,000 jobs, and moving the operation to India.

If the LTU's challenge is successful, it could have serious ramifications for the rest of the financial services industry.

A spokesman for the bank says it is confident that its actions are in line with the DPA and that it has adequate measures in place to protect customer data.

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