Privacy of Consumer Financial Information (Essay Sample)

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Privacy of Consumer Financial Information
History
The Privacy of Consumer Financial Information is a regulation established by the Gramm- Leach-Bliley Act, specifically under Title V, subtitle A. Its purpose is to protect consumers by prohibiting financial institutions from disclosing their nonpublic personal information to third parties without meeting certain requirements. Section 502 of the Act outlines these restrictions (NCUA). To comply with the regulation, banks are required to provide notice of their privacy policies and practices to the Board of Governors of the Federal Reserve System. The Act, signed into law by former President Clinton on November 12, 1999, mandated the NCUA and other banking regulators to issue regulations ensuring compliance by financial institutions. Consequently, the NCUA, Office of the Controller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision (OTS) published regulations governing the treatment of nonpublic personal information by financial institutions in the early 2000s. Part 716 of the NCUA's rules, titled Privacy of Consumer Financial Information, was adopted and became effective on November 13, 2000, with compliance from financial institutions starting