Rodney Hide explains that maybe your financial records won’t be safe with Xero after revealing that Xero has handed over financial records to the Official Assignee outside of the law.
Is this Xero’s VW moment?
Are your financial records safe with Xero [NZX:XRO]? Or would Xero do a Westpac and release them to state agents on simple request without warrant?
Xero CEO Rod Drury has always said safe. He again reassured NBR readers in July that Xero never releases customers’ financial records to state agents.
Mr Drury said Xero refers requests back to the customer for the information required.
“We are the custodians of our customers’ data,” Mr Drury said.
But one customer knows different. Last year Xero passed her company’s records to state agents, they had no warrant, Xero didn’t tell her, and, indeed, when she asked, Xero denied it.
Deputy Official Assignee Annemarie Foidl had asked Xero to supply the customer’s “user name” and “password” citing s171 of the Insolvency Act 2006. It wasn’t just the records she wanted but access. For a month.
We don’t know what then transpired but we do know Xero “supplied [the Official Assignee] with a report showing the credits and debits of each account connected to the subscription.”
Xero didn’t tell the customer. Read more »