Finance firm fined £130k for sending 7.7 million spam texts

A MANCHESTER finance company has been fined £130,000 for sending more than 7.7 million spam texts.

Intelligent Lending, trading as Ocean Finance, was hit with the fine by the Information Commissioner’s Office after it sent the texts offering a new credit card backed by a major lender.

The company believed it was complying with the law because the third party firm it obtained names and phone numbers from claimed it had people’s consent to send texts.

But an ICO investigation found the consent was insufficient to meet the requirements of the law.

Steve Eckersley, ICO head of enforcement, said: “Company bosses everywhere should sit up and take note of this fine and check their practices are compliant with the law before embarking on marketing campaigns.

“It’s your responsibility to make rigorous checks to ensure personal data has been obtained fairly and lawfully. It’s not enough to rely on the word of a third party.”

He added: “We have made it easier for people to report organisations responsible for unlawful marketing practices and they have in their thousands.”

The company sent a total of 7.7 million text messages over six months, with 4.5 million of these successfully transmitted.

More than 1,900 complaints were made about the texts to the 7726 spam reporting service and the ICO. Examples include: “Very worried that my personal information is being handed around…I feel this is very stressful and am wondering who knows what about me.”

“I do not like to think of random companies that I have nothing to do with storing my details to intrude upon my life, offering me things I have no interest in. It makes me angry to think that they are obtaining or using my number illegally.”

As well as a £130,000 fine, the ICO has issued Intelligent Lending with an enforcement notice ordering it to stop sending spam texts.

The ICO has published detailed guidance for firms carrying out direct marketing by phone, text, email, post or fax.

A spokesman from Ocean Finance told The Register: “We are sorry that a very small minority of consumers found our SMS marketing for the Ocean Credit Card last year unwelcome. The number of complaints made to the ICO represented 0.04 per cent of the recipients of these marketing messages.

“0.04% of 4,500,000 is 1,800. According to the ICO, more than 1,900 complaints were actually made regarding the mass-mailing.

“Our marketing campaign used data that we had purchased from a well-known provider of marketing data.

“We conducted extensive and thorough initial and ongoing due diligence with the provider before proceeding and we received written and contractual assurances that the data we purchased had the valid consent in line with applicable laws and regulations.

“We believe that we took all reasonable steps to ensure that the data we used was compliant with all the applicable laws and regulations – which is why we are considering appealing the ICO’s decision.

“We remain determined to operate at all times within both the spirit and the letter of the law and regulations.”