AN investigation has been launched after hundreds of mortgage applications were found dumped in a library car park.

The papers contained names, addresses, phone numbers and financial details. And in some cases, there were photographs and copies of cheques and other financial data.

The applications - dated between 2003 and 2006 - were to Classic Mortgages of Old Trafford, from people in Greater Manchester, Lancashire, Cheshire and West Yorkshire.

The company is listed as in liquidation by Companies House and the M.E.N. was unable to reach any of the directors for comment.

An employee of a Chorlton company, Classic Mortgages Partnership Ltd - which has board members listed at the same Lymm address as those of Classic Mortgages - denied any links to the firm and any knowledge of the dumped papers.

The papers were found close to a recycling bin outside Lymm Library in Warrington, blowing around the car park and into a canal. They were found by resident Hilary Knowles, who called the police.

They arranged for Warrington council staff to clear them.

Now officials from the Wilmslow-based Information Commissioner's Office say they will investigate how the documents came to be there, whether the Data Protection Act has been breached and whether any action should be taken.

A spokesman said: "Information like this can be used in identity crime and any personal data should be kept securely under the Data Protection Act.

"It is not a criminal offence to breach the Data Protection Act, but the Commissioner's Office has the power to issue an enforcement notice."

Mrs Knowles said she had been horrified to find the documents in the car park and spent 45 minutes gathering as many as she could before council staff arrived.

She said: "We went to put our recycling bags there and the place was a mass of paper.

"We found it was lots of very, very personal information."

A council spokesman said it appeared the papers had been removed from the recycling bins overnight.

"This is the third such incident in recent weeks," she said. "The site has been cleaned and will remain under surveillance."