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 Posted: Sat Jun 02, 2007 2:41 am Subject: Graham Leach Bliley |
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How does this law impact collection agencies regarding unauthorized 3rd party disclosure?
Or maybe it's better to ask how it has impacted collection agencies?
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Morningstar
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| Posted: Sat Jun 02, 2007 10:37 am Subject: |
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What is the text of the law, Morningstar?
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kscornell
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cajunbulldog
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| Posted: Sat Jun 02, 2007 11:42 am Subject: |
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You probably recall that anytime you open an account anywhere, you always get a "privacy notice" included with all the paperwork. That is the workings of the GLB Act.
The gist of the act is that any company who has access to non-public information about you (your SSN, acct #s, payment history, your non-listed phone #s, your salary/employer, etc), is required to safeguard your information and prevent it from being disclosed to non-affiliated third parties.
This has two implications. Mainly, this keeps companies from selling your info to other companies for marketing purposes. It also prevents a company from disclosing your non-public information to anyone else who doesn't have a permissible purpose
Just like FCRA, there are some exclusions that would allow the release of information, namely:
| Quote: | (e) General exceptions
Subsections (a) and (b) of this section shall not prohibit the disclosure of nonpublic personal information -
(1) as necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with -
(A) servicing or processing a financial product or service requested or authorized by the consumer;
(B) maintaining or servicing the consumer's account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity; or
(C) a proposed or actual securitization, secondary market sale (including sales of servicing rights), or similar transaction related to a transaction of the consumer; |
Basically, as it pertains to CAs, they cannot disclose information about your account to anyone else, except as permitted by law. HOWEVER, we already know this, since this provision is also made a part of the fdcpa.
BUT they also are required to send you a privacy notice telling you how they will safeguard your information. If a CA does not give you a provacy notice, then they are breeching the GLBA.
After reading the GLBA, my taking is that there is not any much room for enforcement of the Act. In contrast to the FDCPA, which specifically says a consumer is entitled to $1000 per violation of that act, the GLBA does not spell out any real "punishment" for breaking it. (I'm guessing the FTC would dole out fines on a case by case basis).
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DebtCruncher
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| Posted: Sat Jun 02, 2007 1:26 pm Subject: |
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In a lawsuit for fdcpa violations, the GLB Act will be related to a major extent. Since the GLB does not mention about the $1000 fine, will the judge rule in favor of the consumer keeping the FDCPA in mind?
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ricjil
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