New powers to allow banks and building societies to remove the credit cards of customers cautioned for, or convicted of, buying indecent images of children online were agreed in Parliament.
The Data Protection (Processing of sensitive personal data) Order 2006 will allow card issuers to process sensitive personal data provided to them by law enforcement authorities so that they can withdraw the card used to commit the offence.
The order results from collaboration between the Department for Constitutional Affairs, the Association for Payment Clearing Services (APACS), the Child Exploitation and Online Protection Centre (CEOP), law enforcement agencies, children's charities and the Home Office.
The data protection minister, Baroness Cathy Ashton, said:
"This order will help to disrupt paedophile activity and in that way will have an impact on re-offending.
"It is vital to disrupt and where possible to curtail paedophile activities. Removing the credit cards and closing the accounts of these people are critically important steps."
Jim Gamble, Chief Executive of CEOP, said:
"Those who view images of child abuse are responsible for creating the victims of this terrible crime. For every image on line there is a child in the real world who has been abused."
In 2003 and 2004 around 3,000 people were dealt with for taking or making indecent photographs or fake photographs of children, up from just over 1,000 in the preceding two years.
APACS, the UK payments association, welcomed the plans. Sandra Quinn, APACS' Director of Corporate Communications, said:
"No card provider wants to be associated with those who commit these crimes. With this change in the law our members will have the information they need to remove offenders' cards."
The order will come into force on 26 July. It does not require the card issuer to remove or close an account but will be up to the card issuer to make the decision on the basis of the customer's breach of contract.
