Bank Disclosure of Information

[Date of Submission]

The case related to the information disclosure by banks are of high importance, this is so because the banks are considered to be the safe keepers of not only a customer's wealth but also of the accompanying information that they receive from the client with the wealth for safe keeping purposes. The entire reputation of a bank is based upon its ability to keep things safe, if the reputation is however harmed in any way, it is much likely that the investors would not prefer to maintain their accounts in such banks with harmed reputation, where they might consider their valuables, including their information to be unsafe.

The analysis of ombudsman (2005) issue 45highlights the importance for a bank to maintain its integrity and value in the market by addressing the issues that can affect its image in the market, at a priority. Ombudsman (2005) also highlights that the errors while handling the information are mostly at times made by the banks which the customers also try to take advantage of. As the reputation of bank is involved in such cases, the customers expect the bank to be very generous in amending the issues through cash payments.

Unfortunately most banks at times without analysing the details of the issue, try to settle the matters down through early payments so that the cases are not leaked out in the market, which in turn could potentially be harmful for their reputation. How so ever, this is not always the case and mostly the information errors made by banks are not of the nature that it causes potential irreparable harm to the customer, either financially or emotionally. The customer's however if not harmed financially, try to build up the case against the banks on the basis of emotional distress that they have to face as of the banks information error.

Such cases where the information error is not sufficient to cause potential irreparable loss to the customer in terms of financial or emotional, these types of cases can be eradicated and need not to be justified or settled down through the use of cash reimbursements, therefore it is important that each case is analysed under the light of Tournier principles, which states the principles under which the bank is allowed to disclose the information of its customer, these are stated below:

The first principle states that bank can disclose its customer's information when it is compelled by the law to do so.

The second principle states that a bank can disclose its customer's information if the bank has a public duty to disclose it.

The third principle holds that a bank can disclose the information of its customer if the bank is required to do so for its own interest.

The fourth principle states that a bank can disclose its customer's information if the customer has himself/herself agreed to the disclosure of his/her information.

These principles were derived from Tournier vs National Provincial and Union Bank of England case of 1924, as of which the if ...