In California in 2004 a law was passed saying that the customer’s permission had to be granted before their personal financial information, such as credit card activity, could have been sold or shared. However, the industry, now barely afloat courtesy of taxpayers, is lobbying for the law to be totally overturned. In 2005 the US Court of Appeals in San Fransisco altered the law to say that portions of the customer’s information could be given out, but only information that would lead to deciphering insurance, employment, or credit.
The banking industry, according to this article, is seeking to overturn the California law and instead pushing for a federal standard on this issue, rather than have 50 differing state laws. However, this does leave one to wonder if the regulations protecting our privacy will be changed.
You do have to admire the audacity of the banking industry to beg the government for our money to stay afloat and then to say that California’s standards which are designed to protect consumers (remember us – the ones bailing these banks out!) are intrusive on the rights of banks. It is one thing to be arrogant when everything is going right – but the banking industry teaches us that it is possible to be obnoxiously arrogant even when they have done their best to trash our economy. Let’s hope this attack by the banking industry fails. We’ll keep you posted as we learn more about this.
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