No Change To Privacy Policies? Then No Need to Send Notices, According To Bill

WASHINGTON—The House, by a vote of 275-146, last week passed legislation that would exempt more lenders from a requirement to send annual privacy notices to consumers when no changes have been made to their policies regarding the information that is shared with third parties.
Financial institutions are required under the Gramm-Leach-Bliley Act to provide consumers with annual notices on policies for sharing their information with third parties.
In 2015, relief measures on privacy notices were signed into law by President Barack Obama as part of a transportation authorization bill. The law clarifies that consumers will receive privacy notices after opening a new account and when their providers' privacy policies change, explained NAFCU, which supported the legislation.
The bill passed by the House last week, the Privacy Notification Technical Clarification Act (HR 2396), would allow for an expanded exemption if the financial institution's privacy notices are available on its website and can be sent by mail if requested in writing or by telephone, NAFCU explained.
Companies would also need to "conspicuously" notify consumers of the availability of the current policy through a customer's periodic billing statement, on its website or with other written communication, NAFCU noted.