Thursday, August 4, 2011

Personal Data Usage

In question is nonpublic financial information of consumers and customers as such terms are defined in the Gramm-Leach-Bliley Act of 1999. According to the U.S. Code (USC), the term “nonpublic personal information” means personally identifiable financial information that is “provided by a consumer to a financial institution, resulting from any transaction with the consumer or any service performed for the consumer or otherwise obtained by the financial institution.”

The operative phrase is “financial” information. This, of course, would include account numbers, account balances and other nonpublic financial information regarding the consumer, including the fact that the consumer is in default. It does not, however, include property and other public records or information widely available through published telephone books, Internet social sites, etc. Nor does it apply to identifying information - such as a name, address or phone number - so long as the identifying information is not linked to the nonpublic information. the information can be shared with and by persons and entities seeking to assist in enforcing the transaction. Nothing in the codes calls for consent, written or otherwise, by the consumer. This is clearly not an oversight by Congress, as the Fair Debt Collection Practices Act (FDCPA) makes specific provisions for some requirements to be in writing, but not for others. The issue of financial institutions sharing consumer nonpublic information is generally covered under Section 313.1 of the Code of Federal Regulations (CFR)