Data Protection Considerations Relating to Receivership

When an individual enters into a mortgage agreement with a financial institution to purchase a property, both the individual and the financial institution have rights and obligations set out in the mortgage deed. This creates a legal relationship between the individual who purchased the property (the borrower) and the financial institution.

A primary obligation of the borrower contained within in the mortgage deed is to repay the mortgage in line with the terms agreed. Where the borrower fails to repay the mortgage as it falls due, the financial institution has the power to appoint a receiver over the property by issuing a ‘Deed of Appointment of Receiver’.

On being appointed as a receiver, the receiver will have the name of the borrower and the address of the property in receivership, both of which constitute personal data. The financial institution has a lawful basis for providing this personal data to the receiver, as the provision of this personal data is necessary for the performance of a contact to which the borrower is a party. The receiver will then process this personal data during the running and management of the receivership.

This guidance sets out the general position of the Data Protection Commission regarding data protection issues that may arise in the course of a receivership.

 

Data Protection Considerations Relating to Receivership