Anyone who believes they have lost money directly because of the recent ‘loss’ by HM Revenue and Customs (HMRC) of the personal details of up to 25 million Child Benefit claimants may have a case to take legal action against the Taxman.
To have a chance of bringing a case to court, you must be able to prove that you have lost money because of this loss of data. You cannot sue for the stress and anxiety of simply worrying that you might become a victim of identity fraud.
The Data Protection Act 1998 says that any organisation holding information about an individual has to take appropriate precautions to prevent that data from being lost. In his apology to the House of Commons on 21 November, Chancellor Alistair Darling effectively admitted that the Revenue had breached this requirement.
However, it is likely that anyone who can show they have lost out financially will be compensated by their bank, meaning they have not strictly suffered a loss. If the bank does not repay the money immediately, however, then the individual may have a case.
The difficult challenge would then be to prove that a financial loss was directly due to the HMRC error. However, if your data was lost and then you suffer identity fraud for the first time in the following months, a Court may be persuaded that a direct link exists.
Anyone wishing to discuss their legal rights in the event of such a loss should contact their nearest Gamlins Office. Remember it is, of course, likely that any criminal involvement may not become apparent for some time. Our immediate advice is that you should study your bank statement even more carefully in the future, and raise any payments that you cannot explain with your bank as quickly as possible.
