If you’re thinking that your personal and financial information is being kept private by the companies you do business with, you may need to think again.  You may not realize it, but certain information can be shared, sold or traded unless you take action! Make sure know who you are doing business with and what their particular policies are when it comes to your personal information!   

Many consumers have no idea that information such as who they are, what they buy, how much money they earn, what they spend, and how much they owe can in many cases be legally “passed around” to other companies and organizations.  There are existing laws as well as laws being put into effect to help protect consumers – but for many of us, even those aren’t enough to protect information that we consider personal and private! 

The most obvious are companies you have financial transactions with.  For example:  banks, credit unions, insurance companies, securities brokerage firms, mortgage brokers and lenders, car dealerships that do leases or financing, financial advisors – even credit counseling services and credit bureaus!  And of course, retailers - the ones that directly issue their own credit cards like department stores and gas stations. 

Companies may want to share your information for a number of reasons: to offer you more services, to introduce new products, and to profit from the information they have about you.  Think of how valuable information about your spending habits can be to other companies who do not know about you! 

To find out what a company’s policy is as to your personal information, start by  reading those privacy notices that you are receiving in the mail.  Don’t just toss them out thinking they are just junk mail! A privacy notice (which is usually in very fine print) explains how the company sending you the notice handles and shares your personal information.  Some companies voluntarily choose not to share your information with outside companies except where necessary to conduct business with you (i.e. to their billing service so you can be billed).  If that’s the case, the privacy notice will make it clear.  

Federal privacy laws give you the right to stop some of the sharing of your personal financial information.  The laws attempt to balance a consumer’s right to privacy with a company’s need to provide information for normal business purposes.  In layman’s terms, you might call it “necessary” vs. “unnecessary” sharing of personal information. 

The right to stop “unnecessary” sharing of personal information is called “opting out.”  But you have to be proactive!  If you do not opt out within a “reasonable period of time” – generally about 30 days after a company sends out a privacy notice is sent out – then the company is free to share certain personal information.   It’s never too late to opt out of sharing certain information.  Contact your financial company and ask for instructions on how to opt out.  Depending on the company you may have to call a toll-free number or fill out a form and return it to the company.  But remember, any personal information that was shared by a company before you opted out is “out there’ and there’s no way to “pull it back.”  In some cases, you may have choices as to opting out of certain categories of information a company provides to other companies but allow the company to share other kinds of information.  Sometimes, people want their information shared so they can learn about other products and services or new promotions. 

You will usually receive a privacy notice when you open an account or become a new customer.  A company you have an ongoing relationship with also has to give you a notice of its privacy policy annually.  Also, if a company changes its privacy policy, it will either send you a revised privacy notice or tell you about the changes in the company’s next annual notice.  Be on the lookout – a privacy notice may be included as an insert with your monthly statement or bill, or it may be sent to you in a separate mailing.  If you agree, the company may also send you its privacy notice by email or make it available to you on the company’s website.   

After you receive a privacy notice, read through it very carefully.  If you have questions or concerns about a company’s privacy policy, first contact that company directly. If you still have questions about your privacy rights in dealing with a financial company, you can contact the federal or state agency that oversees that type of company.   

Board of Governors of the Federal Reserve System
Regulates state-chartered banks that are members of the Federal Reserve System, bank holding companies, and branches of foreign bankswww.FederalReserveConsumerHelp.gov  

Commodity Futures Trading Commission
Regulates commodity brokers, commodity trading advisors, commodity pools, and introducing brokerswww.cftc.gov 

Federal Deposit Insurance Corporation
Regulates state-chartered banks that are not members of the Federal Reserve SystemConsumer Response Center)www.fdic.gov 

Federal Trade CommissionRegulates any financial company not covered by the other federal regulators such as mortgage brokers, tax and investment services, finance companies, credit bureaus, nonbank lenders, auto dealers, leasing companies, appraisers, real estate settlement services, credit counseling services, and collection agency services

www.ftc.gov 
www.ftc.gov/bcp/edu/microsites/idtheft/ 

National Credit Union AdministrationRegulates federally chartered credit unionswww.ncua.gov 

Office of the Comptroller of the CurrencyRegulates national banks, District of Columbia banks, federal branches and federal agencies of foreign banks, and subsidiaries of such entities. These typically include banks with "national" or "N.A." in their names.www.occ.treas.gov 

Office of Thrift SupervisionRegulates federal savings and loan associations and federal savings banksConsumer Programswww.ots.treas.gov 

Securities and Exchange CommissionRegulates brokerage firms, mutual fund companies, and investment advisorsComplaint Center 
www.sec.gov/complaint.shtml

Copyright 2009 - Law Office of Gina M. Ghioldi, P.C.

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