Your Right to Privacy

By Kristi Vaughan

Sure, those privacy notices have been coming in bank and credit card statements for several years now but have you ever taken time to read them? In this age of readily available information do you actually know what rights you do, and don’t, have to privacy?

Privacy notices

The federal government in 2001 began requiring banks and other financial institutions to annually notify all customers about their policies regarding information sharing. This means if a bank is in the practice of sharing customer names, addresses and other information with third parties, it has to tell you. And you have to be given the opportunity to “opt-out” of such information sharing.

Who sends privacy notices?

You can expect to receive annual privacy notices from banks, insurance companies, securities firms, retailers where you hold credit cards, mortgage brokers, automobile dealers where you have credit, financial advisors as well as sellers of money orders or traveler’s checks.

Opting out

While you have the legal right to opt out of a company sharing certain information about you, you can’t completely shut the door. The Fair Credit Reporting Act and the Gramm- Leach-Biley Act allow the financial companies to share the following information with non-affiliates:

  • Information to firms that help promote and market the company’ products and services
  • Records of your transactions to third parties that provide data processing and mailing services for your company
  • Information requested by court order
  • Payment history on loans and credit cards given to credit reporting bureaus

Online privacy

Online privacy laws are not yet widespread but the state of California in July 2004 enacted the first such law. The Online Privacy Act of 2003 (Calif. AB 68) requires businesses to:

  • Prominently post privacy policies on the website
  • Inform consumers of personally identifiable information that is being collected
  • Tell individuals how they can make changes to their information
  • Specify how changes to the privacy policies will be communicated to customers

More privacy

The three major credit bureaus - Experian, TransUnion, and Equifax-- offer a toll-free number through which you can opt out of receiving pre-approved credit offers for two years. The number is 1-888-567-8688(OPTOUT).

The Drivers Privacy Protection Act forbids state motor vehicle departments with sharing personal information to direct marketers.

You can opt out of receiving direct mail marketing from national companies by writing Direct Marketing Association, Mail Preference Service, P.O. Box 643, Carmel, NY 10512.

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