Optional payments in online banks and data protection
The creation of an optional payment claim in your local bank may be considered as processing of personal data within the meaning of the Data Protection Act.
Such processing must be based on a so-called authorisation in the Data Protection Act.
Authorisation for the creation of an optional payment claim
The potential authorisation of companies and institutions (registration entities) to create a select payment claim in a persons home bank may be that it is necessary to create the relevant claim in order for the registrant to protect his legitimate interests.
The Data Protection Authority has considered that efficient payment service can be considered as a legitimate interest, both in respect of claims that are compulsory to be paid and, where applicable, requests for non-compulsory financial contributions, such as charitable fundraising and similar activities.
If an individual is unhappy with the optional payment claims in the online bank
The individual can object to the processing, for example by registering in the Registers Iceland's restricted list. Today, it is not possible to register the optional payment claims with financial institutions against those individuals who are registered in the National Registry's restricted list.
If an individual does not wish to register in the Registers Iceland's restricted list, he can further oppose the processing directly with the relevant registration body.
In such cases, the registrant may not further process the information, unless he can demonstrate, for example, that there are important legitimate reasons for the processing, which are superior to the individual's interests, rights and freedoms.
The individual can also delete all optional payment claims at the online bank.
