H.R. 3506: Eliminate Privacy Notice Confusion Act

H.R. 3506

Eliminate Privacy Notice Confusion Act

Date
April 14, 2010 (111th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

The House is scheduled to consider H.R. 3506 on April 14, 2010, under suspension of the rules, requiring a two-thirds majority vote for passage. H.R. 3506 was introduced on July 31, 2009, by Rep. Erik Paulsen (R-MN).

 

 

Bill Summary

This legislation makes an exception to the annual privacy notice requirement under current law for financial institutions that do not routinely share the personal information of customers with third parties.

H.R. 3506 specifically amends the Gramm-Leach-Bliley Act to exempt from its annual privacy policy notice requirement any financial institution which: (1) provides nonpublic personal information only in accordance with specified requirements; (2) does not share information with affiliates under the Fair Credit Reporting Act; and (3) has not changed its policies and practices with regard to disclosing nonpublic personal information from those disclosed in the most recent disclosure sent to consumers.

 

Background

The Gramm-Leach-Bliley Act requires financial institutions to provide annual notice to customers in written or electronic form of privacy policies. Privacy policies govern the disclosure of customers' non-public personal information to third parties, as well as the protection of customers' personal information. The law generally allows financial institutions to share customers' personal information as necessary to conduct transactions authorized by customers, or to maintain customers' accounts.

Cost

The Congressional Budget Office (CBO) has not produced a cost estimate for H.R. 3506.