WARNING: Is GDPR the next PPI?

A very real question in our opinion. Look at the GDPR and you will see that not only are the fines devastating but the compensation claimable is borderline insane.

Don’t get me wrong, we are all sick of spam email, stolen identities, misappropriated funds and so on. But spare a thought for the victim of the crime. In this example, a small company. It gets hacked and its data is stolen. For being the victim, it gets fined after having to voluntarily report itself. Then to add a final blow, those whose data is stolen are entitled to compensation even if there is no utilisation of the data or loss.

How businesses will survive after such an onslaught is beyond us. Not only the fines and the compensation but you also have to deal with the costs and reputational damage.

There is not one cloud hoster or software provider that will guarantee 100% security and the ethical hackers we know would laugh if they did.

The result of all of this is that the timing could not be better for the claims management companies. PPI comes to an end in 2019. By then there will be an explosion of new vultures circling. We are going to be hearing “have you had your data stolen, you could be entitled to compensation blah blah blah…” a lot.

As to whether hackers will commit their crimes and then sell the fact of the hack to individual claims management companies (to be first on the list to market claims) is not as far fetched as it sounds…watch this space.

You’ve half a chance…

According to the UK’s Office of National Statistics the UK five-year survival rate for businesses born in 2011 and still active in 2016 was 44.1%. This is less than half of all start-ups…but it need not be so.

Failure Rates The ONS site goes on to state:

“By region, the highest five-year survival rate was in the South West, at 47.0%, while the lowest was in London, at 41.7%.

By broad industry, some notably high five-year survival rates include health, with a survival rate of 54.1% and property, with a survival rate of 51.1%. Accommodation and food services were the lowest, with only 34.6% of businesses surviving for five years.”

Infinity offer business plans and financial modelling to enure your start-up is not just a statistic. See our site today or contact us using the form below.

Still charging for credit card usage?

From Saturday 13th January an EU wide ban came into force making it unlawful to surcharge consumers for using credit and debit cards including other electronic payment methods e.g. PayPal.

N.B. The ban does not apply where the consumer uses a corporate credit or debit card or other electronic payment method, even where they are purchasing personal items. The ban applies to the physical method of payment not the status of the consumer.

Ironically, it is still lawful to apply surcharges for payment by cash or cheque. (Consumer Rights (Payment Surcharges) Regulations 2012. These regulations limit charges to consumers who are buying goods and services.)

In the U.K. the ban will be enforced by Trading Standards (an already overstretched body). Consumers can also bring a legal action (although it remains to be seen if they will be motivated for a few pounds).

A more detailed and useful article can be found here.

This article is intended for U.K. readers and is for guidance only. We do not accept any liability or responsibility for any information provided by any third parties.