The Consumer Financial Protection Bureau (CFPB) this week proposed a new rule that would make privacy disclosures for financial institutions more effective, and less expensive and tedious.
No longer would card issuers, for example, need to mail out disclosures annually to each cardholder. Instead, they may post their privacy notices online, if they satisfy certain conditions such as not sharing data in ways that would trigger consumers’ opt-out rights, according to the CFPB.
“Consumers need clear information about how their personal information is being used by financial institutions,” bureau Director Richard Cordray said in a statement. “This proposal would make it easier for consumers to find and access privacy policies, while also making it cheaper for industry to provide disclosures.”
The proposal would apply to both banks and those nonbanks that are within the CFPB’s jurisdiction. The bureau will make the proposal available for public comment for 30 days.
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