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As part of its push toward “Revamping and Revitalizing Banking in the 21st Century,” the House Financial Services Committee Subcommittee on Financial Institutions and Monetary Policy is reviewing a draft of a financial privacy bill from U.S. Rep Patrick McHenry, R-N.C. The proposed legislation would expand the scope of the Gramm-Leach-Bliley Act (GLBA) to include new data rules. McHenry says the proposal will “modernize the current framework” of financial data privacy “to better align with evolving technology and protect against misuse or overuse of consumers’ personal information.” Here are some high points of the proposal:
- Updates GLBA to flex and fit with future innovations and technologies
- Allows consumers to manage how their personal information is shared outside of their financial institution, have input on how their data is collected and used, and stop collection and request data be deleted
- Requires companies to tell consumers why they are collecting certain personal information and provide the option to stop collection if not needed for the product or service used by the consumer
- Mandates transparent and easy-to-understand privacy terms
- Creates national standard for consistency among institutions collecting consumers’ personal data
Whether the proposal, if adopted, will reduce compliance burdens for affected institutions, as asserted by McHenry, remains to be seen. More to come!