Consumer Privacy

Both federal and state governments realize that there is a need to protect the privacy of citizens. Therefore, they have enacted different laws regarding how personal information collected about individuals can be used. Although there are federal and state laws regarding privacy, it is important to note that currently there is no national law to protect the privacy of information you share online. However, there are steps that you can take to protect your privacy online.

There are several universal protections related to privacy. For example, companies involved in financial activities must send their customers' privacy notices. These notices explain what personal financial information the company collects; whether the company intends to share your personal financial information with other companies; and what you can do, if the company intends to share your personal financial information, to limit some of that sharing. 

Financial companies share information for many reasons: to offer you more services, to introduce new products, and to profit from the information they have about you. If you are interested in other products and services, you may want your financial company to share your personal financial information. 

Federal privacy laws give you the right to stop (opt out of) some sharing of your personal financial information. These laws balance your right to privacy with financial companies' need to provide information for normal business purposes. 

But you cannot opt out and completely stop the flow of all your personal financial information. The law permits your financial companies to share certain information about you without giving you the right to opt out including: 1) information to promote and market the company's own products; 2) records of your transactions--such as your loan payments, credit card or debit card purchases, and checking and savings account statements--to firms that provide data processing and mailing services for your company; 3) Information about you in response to a court order; and 4) your payment history on loans and credit cards to credit bureaus.

If you opt out, you limit the extent to which the company can provide your personal financial information to non-affiliates. If you do not opt out within a "reasonable period of time"--generally about 30 days after the company mails the notice-- then the company is free to share certain personal financial information. If you didn't opt out the first time you received a privacy notice from a financial company, it's not too late. You can always change your mind and opt out of certain information sharing. Contact your financial company and ask for instructions on how to opt out. Remember, however, that any personal financial information that was shared before you opted out cannot be retrieved.