Gramm Leach Bliley - Privacy of Consumer Financial Information

The Gramm-Leach-Bliley Act (GLB) was enacted on November 12, 1999. This federal law requires financial institutions to safeguard personal information which customers provide to them. Generally, financial institutions collect personal information from their customers such as: names, addresses and phone numbers; bank and credit card account numbers; income and credit histories as well as social security numbers. 

GLB requires these affected companies to ensure the security and confidentiality of this type of information. Financial entities have restrictions on when they may disclose a consumer's personal financial information to nonaffiliated third parties; they are required to provide notices to their customers about their information-collection and information-sharing practices, and they must give consumers the opportunity to "opt out" if they do not want their information shared with nonaffiliated third parties. 

All financial entities are required to provide consumers with a notice and opt-out opportunity before these entities may disclose information to nonaffiliated third parties outside of what is permitted under certain exceptions. People and organizations affected by GLB include the following: 

Businesses, regardless of size, that are "significantly engaged" in providing financial products or services to consumers. This includes organizations such as: banks, thrifts, credit unions, check-cashing businesses, data processors, mortgage brokers, mortgage lenders, mortgage servicers, non-bank lenders, insurance companies, real estate agents and appraisers, securities firms, financial planners, professional tax preparers, credit card companies, and retailers that issue credit cards to consumers.  GLB also applies to financial companies that receive information from other financial institutions about their customers, like credit reporting agencies and ATM operators. Financial institutions also are responsible for taking steps to ensure that their affiliates and service providers safeguard customer information in their care.

If you are found to be noncompliant with GLB or to have deficiencies in your administrative, technical or physical safeguards, the regulatory agencies (including the Federal Trade Commission, the Securities and Exchange Commission, the OCC, FRB, OTS, NCUA and the FDIC have the responsibility and authority to take enforcement actions ranging from corrective action to fines, sanctions or other penalties.

 Learn more about common sense security

 Learn more about GLB from the U.S. Senate Committee on Banking Housing and Urban Affairs

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