New Beginning apologises after 1,500 client details sent to Maltese investment fund

New Beginning has apologised after it emerged it sent confidential details of around 1,500 clients to a partner agency in Malta.

The Data Protection Commissioner has launched an investigation after the organisation, which provides assistance to people struggling with mortgage debt, said a New Beginning contractor had “mistakenly included identifying information, including names and address” in an email to Arizun, with whom it is developing a ‘mortgage-to- lease’ option for people with distressed mortgages.

Ross Maguire, co-founder of New Beginning, said: “We are sorry for this lapse on our part.

“As well as ensuring that the data was destroyed, we hired a consultancy firm to review our data protection measures in general. In the next few days, we will write to each of the people on our database whose details were passed on in error to apologise for this lapse on our part and to assure them that their details were not used in any way.”

The issue arose after New Beginning and Arizun had begun work on the ‘mortgage-to-lease’ proposition, which would allow homeowners whose mortgages are in default and at risk of repossession to surrender and then rent back their home. The homeowner would have the right to buy back their property in the first seven years at a 40% discount.

According to New Beginning, for the scheme to be affordable rents would need to be set at a much lower rate than the mortgage.

Arizun would buy 5,000 non-performing mortgages for an estimated €720m, and New Beginning said sample cases from its database were analysed to see if a move from a mortgage repayment to rent would benefit clients.

According to the statement: “No personal details were required and it was agreed at the outset only general information could be shared with Arizun/Casa Mundi with all names, details and identifying information withheld.

“It was also agreed that Casa Mundi would pay towards the cost of New Beginning employees to ensure that this engagement did not detract from our other activities.

“The data was sent to Arizun/Casa Mundi in two tranches. In one of these two tranches a New Beginning contractor mistakenly included identifying information, including names and address. The consultant, who was on a short-term contract, is no longer with New Beginning. Once the error was noticed we contacted Arizun/Casa Mundi which agreed to delete the information sent in error.”

New Beginning received a payment of €20,000 the same day the email was sent, but the organisation said it was not the case that it had received money in exchange for the information.