After half a year of GDPR operation, it could be said that this European data protection standard has sufficiently got under our skin. But of course, there are still myths associated with the GDPR. One of the myths is that some people believe they have the right to withhold consent, or to request the erasure of personal data from any entity that manages their data in accordance with other laws.
And the most widespread myth might be that there will have to be a deletion of data of debtors who would thus be very difficult to prosecute. This information has spread with the speed of the wind, but it is certainly not based on truth. Companies that store data about their clients are using legitimate interest to fulfil legal obligations. Whether it is a sales contract, an employment contract or similar document, they do not need any consent to collect personal data in this way.
Thus, the retention of data in the case of debtor management is also in line with GDPR as it is a legitimate interest. Borrowers’ data must still be handled carefully and in accordance with all applicable laws. It is essential to have secure systems and to permanently delete such personal data once the mandate has expired.If you have any doubts about whether you are properly protecting your clients’ personal data and are GDPR compliant, please contact us and we will be happy to help you with this issue.