Posted on 03/18/2002 10:20:55 AM PST by forest
On November 12, 1999, President Clinton signed into law the Gramm-Leach-Bliley Act (GLBA). The GLBA made several fundamental changes to the laws governing the financial system, including easing the limits on the types of financial institutions that may be affiliated with one another. It also made it much easier for financial institutions to violate the privacy of American citizens -- without their consent, or even without their knowledge.
Under the Gramm-Leach-Bliley Act, a company is an affiliate of a financial institution if it controls, is controlled by, or is under common control with the financial institution. The Act established few limits on the extent to which financial institutions may disclose personal information about consumers with whom they do business.
Generally speaking, the GLBA requires that a financial institution provide a clear and conspicuous notice of its privacy policies and practices and sometimes allows consumers to prevent (i.e., to opt out of) the disclosure of their nonpublic personal information to a nonaffiliated company. The financial institution also must explain how consumers can exercise their opt out rights, which not all have done. Also, these limitations on disclosing nonpublic personal information do not apply when a financial institution discloses a consumer's information to its affiliates.
Under the GLBA, a financial institution generally is any banking institution, credit union, securities entity, or insurance company -- or any other business that engages in activities that are financial in nature under section 4(k) of the Bank Holding Company Act of 1956. That even includes futures entities and stock and commodity brokers. A consumer is any individual who obtains from a financial institution financial product or services to be used primarily for personal, family, or household purposes.
The "nonpublic personal information" means any personally identifiable financial information about the consumer, other than publicly available information.
Got that? Any "nonpublic personal information" other than publicly available information. Any. . . . .
Which means, everything banks, insurance companies, brokers and credit reporting agencies learn about consumers is freely shared with other banks, insurance companies, brokers and credit reporting agencies. That would include all spending trends for the family (credit and debit cards) and complete information about all major purchases. Throw in medical data (insurance companies) and employment histories and one can see that they are building rather good profiles on the American public. Of course, government agents also have access to this information.
Section 508 of the GLBA requires the Secretary of the Treasury, in conjunction with the federal regulators and the Federal Trade Commission, to conduct a study of information sharing practices among financial institutions and their affiliates.
The Study must address: (1) The purposes for the sharing of confidential customer information with affiliates or with nonaffiliated third parties; (2) the extent and adequacy of security protections for such information; (3) the potential risks for customer privacy of such sharing of information; (4) the potential benefits for financial institutions and affiliates of such sharing of information; (5) the potential benefits for customers of such sharing of information; (6) the adequacy of existing laws to protect customer privacy; (7) the adequacy of financial institution privacy policy and privacy rights disclosure under existing law; (8) the feasibility of different approaches, including opt out and opt in, to permit customers to direct that confidential information not be shared with affiliates and nonaffiliated third parties; and (9) the feasibility of restricting the sharing of information for specific uses or of permitting customers to direct the uses for which information may be shared.
We have until April 1, 2002 to add our comments, and we should.
Among other things, we should demand an accounting of why those of us who wish may not "op out" of all reporting of personal information. Furthermore, consumers have a right to know which credit reporting agencies hold records on them and exactly to which entities they are providing information and when. No bank, insurance company, broker or credit reporting agency should ever be allowed to disseminate information about any American without expressed written permission for each instance.
No member of government has the right to legislate away our privacy. Just the opposite, in fact. It is the duty of those in government to insure the security of the people -- and that includes the protection of a person's good name and all information concerning their family. Tell them so.
According to the Treasury Department: "All submissions must be in writing or in electronic form. Please send e-mail comments to study.comments@ots.treas.gov, or facsimile transmissions to FAX Number (202) 906-6518 re: GLBA Information Sharing Study."
Which means, everything banks, insurance companies, brokers and credit reporting agencies learn about consumers is freely shared with other banks, insurance companies, brokers and credit reporting agencies. That would include all spending trends for the family (credit and debit cards) and complete information about all major purchases. Throw in medical data (insurance companies) and employment histories and one can see that they are building rather good profiles on the American public. Of course, government agents also have access to this information.
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