Finance glossary
Data Protection
Also known as: UK GDPR, Data Protection Act 2018
In simple terms
Data protection is the law controlling how organisations collect and use your personal information. It gives you rights, such as seeing what data a firm holds and correcting mistakes.
On this page
What does data protection mean?
Data protection law governs how organisations collect, store and use your personal information. In the UK it is based on the UK GDPR and the Data Protection Act 2018, and is regulated by the Information Commissioner’s Office (ICO).
Financial firms hold a lot of sensitive data about you, so these rules matter.
How data protection works
Organisations must have a lawful reason to use your data, keep it accurate and secure, and only use it for legitimate purposes. You have rights including to see the data held about you (a “subject access request”), to have inaccurate data corrected, and in some cases to have it erased.
Serious breaches can be reported to, and enforced by, the ICO.
How could this affect me?
These rights let you check and correct information that could affect decisions about you — for example inaccurate data on your credit file. You can also object to certain uses of your data, such as some marketing.
If a firm mishandles your data or ignores your rights, you can complain to it and then to the ICO.
Things to watch out for
- A subject access request must usually be answered within one month.
- Consent to marketing can be withdrawn at any time.
- Data protection is separate from getting compensation for a financial loss.
Know your rights
- Under UK GDPR and the Data Protection Act 2018 you can access your data, correct inaccuracies, and in some cases have data erased or object to its use.
- You can complain to the organisation and escalate to the Information Commissioner’s Office (ICO).
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- Information Commissioner’s Office, Your data matters (opens in a new tab). Accessed 22 Aug 2026.
- GOV.UK, Data protection (opens in a new tab). Accessed 22 Aug 2026.