The CFPB Is About To Make Things Easier For Finance Firms

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The CFPB is looking to make things easier for finance firms that don’t share data.

The Consumer Financial Protection Bureau is ready to ease up on certain Gramm-Leach-Bliley online privacy rules for financial institutions that stop sharing customer data with third-party vendors.

The current rule: financial institutions that share customer data with third-party vendors must send annual hard-copy mailers (via snail mail) explaining which third-party vendors partner with your financial institution. The mailer is also supposed to include information on how customers can opt-out of certain 3-party sharing relationships.

Experts predict that the CFPB’s proposed online privacy policy option will save the industry $17 million in administrative costs annually. After all, snail mail ain’t cheap.

Of the proposal, CFPB director Richard Cordray said:

“Consumers need clear information about how their personal information is being used by financial institutions. This proposal would make it easier for consumers to find and access privacy policies, while also making it cheaper for industry to provide disclosures.”

“If an institution shares data with unaffiliated third parties in a way that triggers customers’ right to opt out of such sharing,then that institution generally would not be allowed to use the alternative delivery method.”

This proposal is not a done deal. In fact, it’s only the beginning. The bureau is currently accepting comments on the proposal, after which they will review the submissions and consider any necessary proposal changes.

Kelly / Warner Law works with all manners of finance firms – from individual Forex traders to small credit unions. If you’re a finance firm or business looking for legal counsel, get in touch.

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