Businesses that need to use the electoral register for security
checks risk being denied access to the data unless a row over data
protection is resolved.
The electoral register is widely used by online businesses, banks,
and credit agencies to verify the identity of people making online
credit card purchases, to protect businesses against fraud and
assess the credit-worthiness of customers.
Local authorities have suspended sales of the electoral register
following a court judgement that ruled that its sale for commercial
use breaches data protection and human rights laws.
The decision, which came just as local authorities are preparing to
sell the latest run of the electoral roll, has prompted frantic
meetings between councils, government departments and credit
reference agencies.
The Electoral Commission, the independent organisation responsible
for the electoral roll, is planning to push through new guidelines
to local authorities tomorrow (Friday).
One option is for local authorities to create a separate electoral
database for voters that do not want their details sold on,
creating more work for IT professionals when money is tight and
e-government deadlines are looming.
The court ruling outlaws the sale of the register to commercial
organisations unless local authorities gain the consent of the
voters.
Credit reference companies said this week the decision would make
it far more difficult for retailers to sell over the Internet and
the telephone and could lead to customers being refused
credit.
Credit reference company Experian spokesman Bruno Rost said, "The
electoral roll enables lenders to confirm individuals' addresses
and enables modern channels to market, like the Internet and
phone."
Without access to the electoral register lenders would be unlikely
to take on extra risks. A paper-based replacement could cost £500m
and make it more difficult for consumers to find credit, Rost
said.
Credit checker Equifax said it was in talks with government
departments about the impact of the ruling. If they do not produce
a solution, it would consider taking local authorities to court.
Public affairs director Barry Conroy said, "But we don't expect it
to come to that."
The ruling has called into question plans by chancellor, Gordon
Brown to crack down on money laundering, following the terrorist
attacks in September. Banks need access to the electoral roll to
carry out checks.
Ruling threatens voting >>