What is the Gramm-Leach-Bliley privacy Act?
INTRODUCTION. The Gramm-Leach-Bliley Act seeks to protect consumer financial privacy. Its provisions limit when a “financial institution” may disclose a consumer’s “nonpublic personal information” to nonaffiliated third parties.
What is considered nonpublic information under the Gramm-Leach-Bliley Act?
The FTC regulations define nonpublic information (the phrase used by GLBA) as (i) personally identifiable financial information; and (ii) any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information …
Which are three key rules of the GLBA?
The Act consists of three sections: The Financial Privacy Rule, which regulates the collection and disclosure of private financial information; the Safeguards Rule, which stipulates that financial institutions must implement security programs to protect such information; and the Pretexting provisions, which prohibit …
What information would be exempt from the privacy requirement of the Gramm-Leach-Bliley Act?
The Gramm–Leach–Bliley Act (GLBA) and its implementing regulations impose privacy requirements when financial institutions collect “nonpublic personal information about individuals who obtain financial products or services primarily for personal, family, or household purposes.”[1] GLBA does not apply, however, when a …
What is the main purpose of the Gramm-Leach-Bliley Act quizlet?
The GLBA’s purpose was to remove legal barriers preventing financial institutions from providing banking, investment and insurance services together.
What is the Gramm-Leach-Bliley Act quizlet?
Gramm-Leach-Bliley Act. ensure that financial institutions, including mortgage brokers and lenders, protect nonpublic personal information of consumers.
What is an example of nonpublic personal information?
For example, nonpublic personal information may include names, addresses, phone numbers, social security numbers, income, credit score, and information obtained through Internet collection devices (i.e., cookies).
What are the main privacy requirements of the GLBA law?
To be GLBA compliant, financial institutions must communicate to their customers how they share the customers’ sensitive data, inform customers of their right to opt-out if they prefer that their personal data not be shared with third parties, and apply specific protections to customers’ private data in accordance with …
What are the two significant parts of the Gramm-Leach-Bliley Act?
The GLBA requires companies that qualify as “financial institutions” to take several affirmative steps in order to prevent the unauthorized collection, use, and disclosure of NPI. It imposes these obligations under two “Rules”: (i) the Privacy Rule, and (ii) the Safeguards Rule.
What is the privacy Protection Act?
The Privacy Act of 1974 (5 U.S.C. § 552a) protects personal information held by the federal government by preventing unauthorized disclosures of such information. Individuals also have the right to review such information, request corrections, and be informed of any disclosures.
Which transaction would not require a privacy notice?
This is an example of an isolated transaction, not a continuing customer relationship. An initial privacy notice is not required unless the financial institution intends to disclose personal information to a nonaffiliated third party.
What is the purpose of Gramm-Leach-Bliley Act?
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
When was the Gramm Leach Bliley Act passed?
ABOUT THE GLB ACT The Gramm-Leach-Bliley Act was enacted on November 12, 1999. In addition to reforming the financial services industry, the Act addressed concerns relating to consumer financial privacy.
How does the Gramm-Leach-Bliley Act protect consumer financial privacy?
The Gramm-Leach-Bliley Act seeks to protect consumer financial privacy. Its provisions limit when a “financial institution” may disclose a consumer’s “nonpublic personal information” to nonaffiliated third parties.
What is the Gramm-Leach-Bliley Act?
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
What are the Gramm-Leach-Bliley Act’s notice and opt out provisions?
For example, you may not obtain your customer’s consent to disclose her account number for marketing purposes. The Gramm-Leach-Bliley Act’s notice and opt out provisions are in addition to the obligations imposed by the Fair Credit Reporting Act (FCRA).