H. R. 2396, Privacy Notification Technical Clarification Act

This bill would exempt financial institutions from the requirement to annually disclose their policies and practices regarding customers’ private personal information if they meet specific criteria. Specifically, a financial institution would be exempt if they: 1) Haven’t changed their policies since their most recent disclosure; 2) Make those policies available online and upon request through the mail or over the telephone; and 3) Periodically notify customers of the availability of information on those policies and practices.

Why Jason Lewis’ vote conflicts with our values.

“This bill offers too big an exemption to the requirement that lenders notify customers each year about the policies regarding customers’ personal information. It should only apply to companies that share information with close, but unaffiliated third parties.” (Source: Countable)

“Under the Gramm-Leach-Bliley Act (GLBA), customers are generally entitled to an annual privacy notice from their financial institutions. During the 114th Congress, legislation was enacted to narrowly exempt financial institutions from having to provide an annual privacy notice if the privacy policy and practices had not changed from the last time the customer received a copy, and if the institution does not share or sell a customer’s personal information with an unaffiliated third party. In those instances, the customer does not have the ability to opt-out from having their information shared by a financial company with its affiliated companies. H.R. 2396 could eliminate meaningful, clear disclosures to consumers about their privacy rights, including their ability to opt-out from having their information sold to unaffiliated third party companies. Furthermore, the current form of H.R. 2396 would expand flexibility to comply with, if not minimize, annual notice requirements under the GLBA to all financial institutions, including payday lenders, rent-to-own companies, and potentially bad actors.” (Source: Minority View, Financial Services Committee, Report 115-434).

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