Data Protection and Credit Checking

We have recently had many instances where previous landlords and employers have refused to give a reference for an applicant without that applicant giving written authority to the previous landlord or employer for the reference to be given. It seems that this is prompted by concerns that to do so would cause body giving the data to contravene the Data Protection Act.

It is a requirement of the Data Protection Act that:

Personal data should only be processed fairly and lawfully. In order for data to be classed as 'fairly processed', at least one of these six conditions must be applicable to that data.

1. The data subject (the person whose data is stored) has consented ("given their permission") to the processing;
2. Processing is necessary for 'the performance of' (to speed up the completion of) a contract;
3. Processing is required under a legal obligation (other than one stated in the contract);
4. Processing is necessary to protect the vital interests of the data subject's rights;
5. Processing is necessary to carry out any public functions;
6. Processing is necessary in order to pursue the legitimate interests of the "data controller" or "third parties" (unless it could unjustifiably prejudice the interests of the data subject).

From the Wikipedia Article on the DPA.

It seems that many landlords and employers consider #2 to be sufficient for the 'fairly processed' requirement and instead insist on #1 - data subject's permission. This results in many delays in the completion of credit checks. If you are an applicant (i.e. prospective tenant who has made an offer on a property that has been accepted) then please contact your landlord and employer to explicitly give permission for them to release information required as part of the credit check. The credit check will be done by a company called Lumley Letsure, which is a very well-established company in this field.