Companies holding onto password data after closing accounts

[jim]

Recently, I applied for a new bank account, and got all the info through. Nothing about online banking though, which is important to me.

On the off-chance that I could speed up the process, I tried to register online, but apparently my account was already registered. I recognised the logon ID, which was strange. I'd closed an account at the same bank about a year previously, terminating all relationships with them.

So I tried logging in with my old details, and not only did they work, but my new account was registered on the same login.

Am I right to think that it's a bit weird that they kept my passwords for my accounts for a long period of time when I wasn't a customer?

[cptwhite_uk]

Not at all, I'd expect all personal information and details to be destroyed? Which bank was it? Name and shame them!

[KeyboardDemon]

IIRC my online bank account and actual bank account are treated as separate accounts, each with their own unique bank account number and sort code, I would assume that closing one will not automatically close the other even though the online code is there to access data about the actual account.

I think all that happened in your case is that you closed the actual account, had you set up online savings accounts or other 'deposit' accounts where you can put some money for savings etc... then you would still be able to manage those online accounts through the online banking. I have set up online savings accounts and I transfer money into these accounts from time to time so that I can save up for PC upgrades and not see that money in my regualr account which stops me from accidentally spending the money I have set aside for a graphics card or monitor etc... If I were to close down one of these online deposit accounts I wouldn't want my main account affected or even if I did things the other way around.

[Rob_B]

Banks HAVE to keep your data on file for a certain period after closure for regulatory reasons. I believe it's about 7 or 8 years (I await to be proven wrong)

I assume that instead of deleting just some of your data &/or to stop any confusion with someone else setting up a login with the same details this bank kept it all. I believe that's perfectly normal.

[dcgregg]

http://ico.org.uk/ : Agreed industry practices
How long certain kinds of personal data should be kept may also be governed by specific business-sector requirements and agreed practices. For example, we have agreed that credit reference agencies are permitted to keep consumer credit data for six years.

Banks might also have an agreed industry practice and more then likely will keep your data for up to the minimum retention period of six years. Sometimes this could be a good thing for instance PPI claimback and maybe other legal proceedings that might happen.

[BobF64]

Whats annoying me is shared bank details.

I have an account with Lloyds, and they cloned my online banking details to TSB when it split.
I also have a Halifax credit card, and despite registering separately, any details i edit at Lloyds or Halifax are replicated over, but neither share any actual log in details nor account information.