PIPEDA Case Summary #2016-012: Customer gets signed up for retailer credit card without his consent
An individual complained that a retailer's salesperson signed him up for a credit card without his knowledge or consent, and that a bank subsequently conducted a credit check using inaccurate information. The Office of the Privacy Commissioner of Canada (OPC) found that the bank failed to demonstrate it obtained the complainant's consent for the credit check and that the collected information was sufficiently accurate. The bank apologized, cancelled the credit card, and removed the inquiry from the complainant's file. The bank also discontinued its pilot program for in-store credit applications.
- Adequacy of consent for a credit card application and credit check
- Accuracy of personal information collected
- Adequacy of procedures for collecting personal information and obtaining consent
Complaint well-founded and resolved
The OPC found the bank contravened PIPEDA principles concerning consent, accuracy, and the implementation of adequate procedures, as it could not demonstrate that the complainant knowingly consented to the credit check or that the information collected was accurate. The bank took satisfactory remedial actions.
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The bank apologized, cancelled the credit card, removed the inquiry from the complainant's file, and discontinued its in-store pilot program for credit applications, pledging to implement stronger consent and data verification measures if the program is relaunched.
- Principle 4.3 PIPEDA
- Principle 4.6 PIPEDA
- Principle 4.1.4 PIPEDA
This summary is informational only and not legal advice.