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Summary:
Title V of the Gramm-Leach-Bliley Act of 1999 (GLBA) (P.L. 106-102, H.Rept. 106-434) prohibits financial institutions from sharing nonpublic personally identifiable customer information with non-affiliated third parties without giving consumers an opportunity to opt out and requires them to provide customers with notice of their privacy policies. It requires financial institutions to safeguard the security and confidentiality of customer information. Finally, it delegates rulemaking and enforcement authority to the federal banking and security regulators, the Federal Trade Commission, and state insurance regulators. P.L. 108-159 makes certain Fair Credit Reporting Act (FCRA) preemptions of state law relative to information sharing among affiliates permanent and provides a limited opt-out of affiliate sharing of information for marketing purposes. GLBA, which deals with information sharing among non-affiliated third parties, is not directly addressed. In the 109th Congress, S. 116 includes some modification of GLBA privacy provisions. This report will be updated to reflect action on major legislation. See CRS Report RS21427, Financial Privacy Laws Affecting Sharing of Customer Information Among Affiliated Institutions, CRS Report RL31758, Financial Privacy: The Economics of Opt-In vs Opt-Out; CRS Report RL31847, The Role of Information in Lending: The Cost of Privacy Restrictions; CRS Report RS21449, Fair Credit Reporting Act: Preemption of State Law; and, CRS Report RL32535, Implementation of the Fair and Accurate Transactions (FACT) Act of 2003.
