You can claim compensation under the Data Protection Act if an organisation's breach of the Act's provisions meant that you underwent "damage, or damage and distress." This is extreme, but if you have proof that it happened, it's a course worth considering. The burden of proof will lie with you of course, as you're bringing the action and though it should be relatively easy to find evidence of damage, distress can be a lot tougher to prove. It's always best to exhaust the other avenues first if you can.

Restrictions

Before you make a claim however, you have to distinguish between damage and distress - which can be a very tricky point and distress can be a very nebulous thing. Under the law, if all you suffered was distress because of the processing, then you can only make a claim if the data has been used for "special purposes" and only three categories are allowed - artistic, literary or journalistic.

How to Claim Compensation

If the organisation offers you compensation, then everything can be settled easily. If you can't reach an agreement however, you'll need to take them to court (although most organisations would prefer to pay a small amount than face the glare of bad publicity). You can either specify the amount of compensation you want the court to award you (known as "liquidated damages"), or leave the decision up to the judge ("unliquidated damages"). Your claim should also contain an application that demands the organisation remedy the breach in the Act that caused the damage in the first place.

Generally, if your claim is for less than £5000, the court will put the case under the small claims procedure, which means you won't need to use a solicitor; you can handle the case yourself.

The Amount of Compensation

The amount of compensation is up to the judge; the Act offers no guidelines for compensation levels. This means he has to take a number of things into account, including the extent of the breach and its effect on you.

Even in the case of liquidated, or specified damages, where the sum you've stated is simply the same as the amount you've lost because of the organisation's actions, the judge might disallow part of your claim. He can also award you a lesser amount than you asked for, or possibly even nothing at all.

Getting Your Money

In most instances however, if an organisation is found to have done wrong and you've proved damage and distress, you'll receive at least some money in compensation and the organisation will pay relatively promptly.

If they don't however, or they refuse or can't pay, that leaves them in breach of the court. This means that you have to return to court to learn how you can enforce the judgement. This might even involve new proceedings, which can end up being more time-consuming than the amount is worth.

As an extreme measure, consider starting bankruptcy proceedings against the organisation if they refuse to pay. This course of action often achieves very quick results, but shouldn't be taken hastily.