Opportunity to Comment on New Proposed Model GLBA Privacy Notices

We are all swamped with those Gramm Leach Bliley Act (GLBA) mandated privacy notices from our financial institutions.  The idea was a good one:  Inform consumers how their personal financial information would be used -- and give them an opportunity to "opt out" of certain types of information sharing. 

BUT, reality intruded:  1.  No one reads these disclosures - most end up in the trash.  2.  Few consumers can understand them.  3.  Because there are significant exemptions to information-sharing prohibitions, even if a consumer does read the notice and "opt out", financial institutions can still share information with a laundry list that includes all affiliates and many service providers.  4.  Drafting, printing, and mailing these disclosures is very expensive for financial institutions.

Now, the federal banking agencies have proposed simpler, standard privacy notice language.  For consumers, this should at least simplify the forms and make them easier to understand.  For financial institutions, this should ease the regulatory burden of drafting their own notices and the standard form will provide a safe harbor. 

Take a look and send in your comments by 60 days after Federal Register Publication.  This means that the comment period will probably run out toward the end of May 2007, since the proposal has not been published yet, but will be published shortly.

Link:  http://www.fdic.gov/news/news/press/2007/pr07024.html

(ag) March 23, 2007, in Financial Privacy