WASHINGTON (Legal Newsline) — The Consumer Financial
Protection Bureau (CFPB) has announced it has proposed to implement recent congressional legislation allowing certain financial institutions to be exempt
from sending annual privacy notices to consumers.
Under the Gramm-Leach-Bliley Act (GLBA), financial
institutions must send their customers annual privacy notices that explain
whether and how it shares nonpublic personal information. Generally, an
institution must notify consumers if it plans to share information with third
party sources in ways other than specified by the statute so that consumers can
opt out of the sharing.
Congress advanced legislation last December that amended the
GLBA, allowing for certain institutions to be exempt from the rule. Those
exempt would include institutions that limit sharing of consumer information
and have not changed their privacy policies since the last noticed delivered to
The CFPB’s current proposal would allow it to begin
implementing the legislation. Additionally, it would establish deadlines for
institutions resuming annual privacy notices if their practices change and they
therefore stop qualifying for the exemption.