A broker that disclosed a claimant’s bank account details to a strata owners’ corporation has been ordered to pay $500 in non-financial loss compensation.

The Australian Financial Complaints Authority found the broker “did not entirely meet its privacy obligations” and the breach injured the woman’s feelings.

The complainant was a beneficiary under a strata policy arranged by the broker, had lodged a claim with the insurer, and the broker was assisting her with managing the claim.

But she expressed concern about the way broker Resolute Property Protect collected, used and disclosed her personal information and said it breached sections of the Australian Privacy Principles.

AFCA found the collection of information was not unreasonable, and it acknowledged the broker’s position that it was necessary for the owners’ corporation to receive information about lot owners’ insurance claims.

But bank account details sent to the owners’ corporation on June 16 2023 did not relate to the purpose for which the information was collected, and an exception under the privacy principles did not apply to allow the disclosure, it determined.

“I accept the broker did not take reasonable steps to protect the complainant’s personal information from disclosure when it sent her bank account details to the owners’ corporation,” the AFCA adjudicator says. “I note, however, it may be that the owners’ corporation already had these details.”

On August 16, the broker took steps to notify the recipient and request it delete the information. It had apologised to the complainant for the error on July 26.

“There is no information to show the broker informed the complainant of the steps it intended to – and eventually did – take to address the error, until the complainant lodged the AFCA complaint,” the decision says. “It may have been helpful for the broker to have advised the complainant of these steps at the time, given her concerns.”

AFCA also found the broker did not adequately respond to the complainant’s request for details of the information it disclosed to the owners’ corporation.

While the broker’s conduct “was not entirely inappropriate” and it generally acted reasonably when collecting and disclosing information to the owners’ corporation, it also did not entirely meet its privacy obligations, AFCA says.

“The complainant was in a vulnerable position as she was displaced from her home, and it appears the complainant was hurt by the broker’s actions,” it says. “For this reason, I consider an award of $500 non-financial loss compensation is fair. The broker has already apologised to the complainant for its disclosure of her bank account details, which is appropriate.”

The decision is available here.