CURRENT ISSUES
Topics of Interest to Consumers

Privacy Rights … New Law affects You!

Consumers will soon begin to receive notices from banks, credit card companies, insurance companies, security firms and any other “financial institution” with which they transact business.  The Gramm-Leach-Bliley Act that addresses privacy protections was approved by the congress in 1999 and requires these organizations to provide customers with a privacy notice.  The notice must describe how personal, non-public information is handled and how a customer can take action to limit the disclosure of their personal information.  Under the new law, a financial institution may share a customer’s personal information with other businesses unless the customer takes action to limit that disclosure.

  Customers must be provided with an initial privacy notice by July 1, 2001 and at least once a year after the initial notice for as long as they remain a customer.  The privacy notice must describe the financial institution’s policies for collecting, protecting, and sharing personal information.  A privacy notice must also contain a description of how a customer can take action to keep their nonpublic personal information from being disclosed to others.  This right to take action to keep personal information private is known commonly as a right to “Opt-Out,” because it gives the individual the opportunity to take action to exclude personal information from future disclosures.

  A privacy notice will describe how an individual can take action to restrict disclosures of nonpublic personal information to businesses that are unrelated to the financial institution.  In addition, the privacy notice will describe how an individual can take action to restrict disclosures of nonpublic personal information to businesses that are related to the financial institution.  The privacy notice will explain how to Opt-Out and may include:

·        A reply form or check-off box;

·        A toll-free number to Opt-Out; or

·        An electronic Opt-Out, if the customer has agreed to the electronic delivery of      information.

An individual can elect to Opt-Out at any time; however, until the organization, receives notice they may begin disclosing personal nonpublic or credit information.  So, if an individual wants to Opt-Out, they should follow the opt-out procedures as soon as they are notified.  An Opt-Out will continue as long as the individual remains a customer or until revoked.

A free pamphlet with details about Privacy Rights is available from our office.