Privacy Laws of Banking

As a consumer, federal and state laws protect your financial dealings. Knowing your rights is key to protecting this information. There are numerous laws to regulate how banks and other financial institutions share your information and inform you of activities relating to your accounts.

GBLA

The Gramm-Leach-Bliley Act is one of two key laws defining privacy regulations. This law applies to non-personal information you provide in the normal course of business with your bank such as your address and employer information.

FCRA

The Fair Credit Reporting Act oversees personal information such as financial activities, social security and account numbers.

Disclosure

Banks are required to provide you with their written policy regarding privacy protections when you open your account and periodically thereafter. Your information cannot be shared with third parties without your permission.

Coverage

These acts include protections for children's accounts, electronic dealings and credit reporting.

Third Parties

Third parties are described an affiliates and non-affiliates. The FCRA is the most explicit in the area, limiting access to account information by the banks affiliates, particularly for marketing purposes.

Redisclosure

Should you allow certain information to be shared for a particular reason, such as a mortgage, the banks is prohibited from redisclosing this information again for any purpose.

Policy

Because banks adopt their own policies, however, they are restricted to clear, easy to read information. Too much "fine print" should be a red flag.