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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. In the 108th Congress, H.R. 1766 would give preemptive effect to the Gramm-Leach-Bliley privacy provisions and would make permanent certain Fair Credit Reporting Act (FCRA) preemptions of state law relative to information sharing among affiliates. S. 660 would make the FCRA preemptions permanent but would not affect Gramm-Leach-Bliley. H.R. 781 would provide a means to exempt lawyers from GLBA requirements. This report will be updated to reflect action on major legislation. For further information see CRS Reports RS21427, Financial Privacy Laws Affecting Sharing of Customer Information Among Affiliated Institutions, RL31758, Financial Privacy: The Economics of Opt-In vs Opt-Out; and RL318476, TheRole of Information in Lending: The Cost of Privacy Restrictions.
