Protecting Your Financial Privacy: The Rights Afforded to You by the Gramm Leach Bliley Act

The Gramm LeachBliley Act (GLBA) also referred to as the Financial Services Modernization Act of 1999, was established to protect certain financial information of consumers in connection with the business practices offinancial institutions such as banks, credit unions, insurance companies. The GLBA creates three basic privacy rights for consumers: the right to a privacy notice, the right to stop financialinstitutions from sharing certain financial information by “opting-out”, and the right to be informed how the institution will protect the confidentiality and security of their information.

Consumers’ rights under the GLBA are limited. For example, The Act does not require financial institutions to specify exactly with whom and why they are sharing a consumer’s financial information with an affiliated company.  Rather, financial institutions are only required to provide consumers with a brief description of the categories of information that may be shared. Also, consumers may not have ability to “opt-out” to avoid information being shared within a company’s own “corporate family” or if the company needs the information to conduct normal business (i.e. attempting to prevent fraud, complying with a court order, etc.).

For more information regarding the GLBA contact Joseph Messer at jmesser@messerstrickler.com or (312) 334-3440.