I am an ex credit and marketing data analyst. You would be shocked if you knew the level of insight that can be gained by the typical person who lives at a postcode. This data is anonymised, however it is used at a postcode level and then segmented into types and groups, that are then used for targeting and profiling.
So I could profile on Age, ethnicity, type of house, value and ownership. Family size.
Hobbies, employment, media usage (newspaper and internet), type of car, holidays Uk and abroad.
Health, likelihood of suffering from major classifications of illness, Death rate, crime rate.
Finance, indebtedness and bankruptcy, CCJ and credit repayment. Voters Roll.
Organisations use this data all of the time, in any system as soon as you enter your postcode this data is assessing and segmenting you into differing actions and can be used in various risk and underwriting strategies.
As your worst fears are already being used, I would rather they use correct data about me, rather than lumping me in to a postcode.
I dont want to lose my privacy, but equally I want to be treated as an individual.