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| Version 0 | Version 1 |
|---|---|
| Nationwide customers pay £1m fine | Nationwide customers pay £1m fine |
| (about 8 hours later) | |
| The customers, not the directors, of Britain's biggest building society will pay a £980,000 fine for lapses in data security. | The customers, not the directors, of Britain's biggest building society will pay a £980,000 fine for lapses in data security. |
| Nationwide was fined on Wednesday after a laptop was stolen from an employee's home in August. | |
| It took three weeks before the society realised the extent and sensitivity of the customer details on the computer. | It took three weeks before the society realised the extent and sensitivity of the customer details on the computer. |
| But Nationwide has told the BBC that it "would not be fair" if the directors paid the fine. | But Nationwide has told the BBC that it "would not be fair" if the directors paid the fine. |
| As a building society Nationwide is owned by its members - the 11m customers - so any penalty in effect comes from their money. | As a building society Nationwide is owned by its members - the 11m customers - so any penalty in effect comes from their money. |
| Many are not happy that they will have to pay the penalty for their data being compromised. | Many are not happy that they will have to pay the penalty for their data being compromised. |
| Jill called BBC Radio 4's Money Box programme to say: "Because it's a mutual society any fine will have to be picked up by the members because there are no shareholders. | Jill called BBC Radio 4's Money Box programme to say: "Because it's a mutual society any fine will have to be picked up by the members because there are no shareholders. |
| "It's a double whammy. It's bad enough to think your details may have been spread across the globe unnecessarily. But to be told as a member of a mutual society you are going to be fined, that seems a little unfortunate." | "It's a double whammy. It's bad enough to think your details may have been spread across the globe unnecessarily. But to be told as a member of a mutual society you are going to be fined, that seems a little unfortunate." |
| If the fine is divided equally among all Nationwide's members the cost amounts to about 8 pence each. | If the fine is divided equally among all Nationwide's members the cost amounts to about 8 pence each. |
| A Nationwide spokesman said because the society has £135bn in assets and reserves the fine should easily be absorbed and that mortgage or savings rates would not change as a direct result of having to pay it. | A Nationwide spokesman said because the society has £135bn in assets and reserves the fine should easily be absorbed and that mortgage or savings rates would not change as a direct result of having to pay it. |
| Other members have suggested that the five directors should pay the fine. | Other members have suggested that the five directors should pay the fine. |
| Between them they earned more than £4m in 2005/06, about half of which was in performance-related bonuses. | Between them they earned more than £4m in 2005/06, about half of which was in performance-related bonuses. |
| The Financial Services Authority said it did not have the power to fine directors directly over this breach of its principles. | The Financial Services Authority said it did not have the power to fine directors directly over this breach of its principles. |
| And Nationwide told the BBC that it would "not be fair" if directors paid after they had helped build Nationwide into the large and successful society it is today. | And Nationwide told the BBC that it would "not be fair" if directors paid after they had helped build Nationwide into the large and successful society it is today. |
| Data loss | Data loss |
| Other members are angry that Nationwide still refuses to confirm whose data was on the laptop that went missing or what information was involved. | Other members are angry that Nationwide still refuses to confirm whose data was on the laptop that went missing or what information was involved. |
| In December it wrote to all 11m customers to tell them that the stolen computer did not contain PINs, passwords, balances or memorable data. | In December it wrote to all 11m customers to tell them that the stolen computer did not contain PINs, passwords, balances or memorable data. |
| But it will not deny that names, addresses, account numbers, e-mails, dates of birth and telephone numbers were on it. | But it will not deny that names, addresses, account numbers, e-mails, dates of birth and telephone numbers were on it. |
| It sends a very important wake-up call particularly to banks and others in the financial sector Assistant Information Commissioner Phil Jones The size of the fine - one the biggest in the history of the FSA and the first on a building society - indicates how seriously the regulator viewed the loss. | It sends a very important wake-up call particularly to banks and others in the financial sector Assistant Information Commissioner Phil Jones The size of the fine - one the biggest in the history of the FSA and the first on a building society - indicates how seriously the regulator viewed the loss. |
| The Information Commissioner, the body which protects our data, let the FSA take the lead in the investigation of what was almost certainly a breach of the Data Protection rules. | The Information Commissioner, the body which protects our data, let the FSA take the lead in the investigation of what was almost certainly a breach of the Data Protection rules. |
| Assistant Commissioner Phil Jones told Money Box: "It sends a very important wake-up call particularly to banks and others in the financial sector and to all organisations that hold personal information." | Assistant Commissioner Phil Jones told Money Box: "It sends a very important wake-up call particularly to banks and others in the financial sector and to all organisations that hold personal information." |
| But he warned that customers could not use the Data Protection Act to find out what data of theirs was on the laptop. | But he warned that customers could not use the Data Protection Act to find out what data of theirs was on the laptop. |
| "The obligation is to tell you what information they hold," he said, "but you and I don't have rights to require someone to tell us what data is held in what particular kit in what particular place. | "The obligation is to tell you what information they hold," he said, "but you and I don't have rights to require someone to tell us what data is held in what particular kit in what particular place. |
| "The Data Protection Act does not require them to go into that sort of details." | "The Data Protection Act does not require them to go into that sort of details." |
| However, he confirmed the decision was up to Nationwide: "There is nothing in the Data Protection Act that would stop them passing that information on to customers who asked them." | However, he confirmed the decision was up to Nationwide: "There is nothing in the Data Protection Act that would stop them passing that information on to customers who asked them." |
| BBC Radio 4's Money Box was broadcast on Saturday, 17 February 2007 at 1204 GMT. | BBC Radio 4's Money Box was broadcast on Saturday, 17 February 2007 at 1204 GMT. |
| The programme will be repeated on Sunday, 18 February at 2102 GMT. | The programme will be repeated on Sunday, 18 February at 2102 GMT. |