ABA and several other trade groups today welcomed the Consumer Financial Protection Bureau’s move to implement recent legislation providing banks an exemption from sending an annual privacy notice provided they meet certain requirements.
“[I]f adopted as proposed, it will streamline regulatory requirements, coordinate statutory and regulatory mandates, and clarify several questions about the coordination between [Gramm-Leach-Bliley Act] and [Fair Credit Reporting Act] notices,” the groups said. “The associations believe there are additional opportunities that would serve consumers by facilitating information sharing between affiliates, particularly to take advantage of new technologies.”
Under GLBA, banks were generally required to send annual notices to customers detailing whether and how their nonpublic personal information is shared and provide a way for customers to opt-out of having their information shared with unaffiliated third parties. In December, Congress passed a law ending the requirement to mail an annual notice, provided that they have not changed their policies and practices on the disclosure of nonpublic information since the previous notice was sent, and that they do not share non-public personal information with third parties, as permitted by law. For more information, contact ABA’s Rob Rowe.