Tell us
what you think
Our Sponsors
 |
Our Sponsors
|
Regulators Sued Over Privacy Rules
Credit Reporting Industry Cries "Foul!"
The ongoing battle on privacy rules for the financial industry heated up even more recently when the credit reporting industry filed a lawsuit against the federal regulators, charging the new privacy rules are unconstitutional.
They will ask the court to issue a preliminary injunction to keep the rules from taking effect November 13, according to their attorney. (Compliance is voluntary until July 1, 2001)
Seven federal agencies have already issued rules implementing the Gramm-Leach-Bliley Act of 1999. Part of the rules say that information provided by a customer is nonpublic information, and is therefore protected. An exception is unless the financial institution has a "reasonable basis" for concluding the information is publicly available.
Financial institutions have traditionally taken the more conservative approach when given a choice on regulation translation, and may choose not to share that information with outside companies (credit bureaus) without the customer's permission (opt-in).
The credit bureaus claim this aspect of the privacy regulations illegally and unfairly limits their ability to collect and disseminate information about consumers.
Copyright © 2000 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 10, No. 9, 8/00
Rate This Article
Current Rating For the Feature:
| Regulators Sued Over Privacy Rules |
| Total Ratings for this Feature: 0 |
|