Data firms fingered in pension claims

Two direct marketing firms have been hit by claims that they are selling pensioners’ personal data – including income, the value of the investments and the size of their pensions – without their consent.
According to a somewhat sensationalist report in the Daily Mail, Targeted Response Direct and B2C Data (a DMA member) are accused of dodgy practices, although both firms insist they are acting within the law.
The Mail claimed David Billington, a director at Targeted Response Direct offered an undercover reporter £500 for every pensioner she could persuade to put £20,000 or more into the investments.
The firm also offered, for £1.50 a time, to sell the names of any pensioners who had revealed they had got a “frozen or private pension” in a survey – a move which would appear to back up the company’s own claims that the data was opted-in.
Meanwhile, according to the Mail, a director of B2C Data boasted he had access to the salaries, investments and pensions of ‘a million people’. The information he sold to the reporter includes details of the salary, pension pots and investments of 15,000.
B2C director Nick Sayer claimed the firm’s financial information was primarily obtained from financial advice company Sesame, although Sesame categorically denies this. B2C Data maintains it has abided by all the laws and regulations of its industry.
However, the Daily Mail claims has sparked an investigation by the Information Commissioner’s Office and head of enforcement Steve Eckersley described the report as “very worrying”.
Eckersley added: “The worst case scenario here is this information getting into the wrong hands and being used to target individuals at a critical point in their financial lives.”
The move comes just a week before legal reforms come into force which will allow anyone aged 55 and over to access their full retirement pots, and use it like a cash machine.
According to Government figures, those eligible will be able to draw on £140bn – an average of £25,000 each – as the changes mean people will no longer be forced by an annuity.