Q: An individual debtor has a loan account A kept with a credit provider of which there is as yet no material default but the debtor is experiencing difficulty to repay in meeting his liability. Under a scheme of arrangement arrived at between the debtor and the credit provider, loan account A was terminated and replaced by a new loan account B of which the amount and method of payments were adjusted. All sums due and payable under account B were punctually repaid and eventually settled. Can the debtor request for deletion of his credit data in respect of account A and in respect of account B within 5 years of account termination?
A: One of the conditions to be satisfied before the individual can exercise his right to request for deletion of his account data under Clause 2.15 of the Code is when the account has been settled by full payment (other than payment by refinancing of the debit balance on the account by the credit provider). Since account A was terminated only as a result of refinancing of the debit balance by the credit provider, although there is no material default in respect of account A, the debtor loses his right to request for deletion of his account data on non compliance with Clause 2.15.1 and the account data would be retained for 5 years after account termination. The rationale being that the individual did not in fact repay by his own means and account A was terminated simply for the purpose of account management. In respect of account B, since both conditions under Clause 2.15.1 and 2.15.2 were satisfied, the individual can request for deletion of his account data within 5 years of termination of account B.
When the opt out request for account A was refused, the credit provider shall take reasonably practicable steps to notify the individual the rejection and the reason for rejection. Where the request for deletion is accepted, the credit provider shall as soon as practicable request credit reference agency to delete such data.