Gramm Leach Bliley Act (GLBA or GLB Act) is also referred to as financial-modernization-Act of 1999. This is a federal law that requires all financial institutions to provide full details on how they protect and share private information of their customers. In order to abide by the Gramm Leach Bliley Act, every financial institution must communicate with its customers on how they use sensitive data. Customers must be informed and given the choice to opt-out from sharing data with third parties.
What’s The Benefit Of Complying With GLBA?
By complying with GLBA, you have less risk of facing penalties that arise due to the illegal sharing of customer data; you can prevent your company from reputational damage. Every financial institution must do all it can to secure the privacy of its customers. The GLBA imposed some rules and regulations which must be abided by financial institutions, these rules include;
* All customer information must be protected against unauthorized use.
* Customers must be informed on how their data is shared with third parties and must be given the permission to opt out of any data sharing with third parties.
* They must track the activity of any user that is trying to access protected records.
Complying with the GLBA standards protect customers and their records, it also strengthens and ensures customer trust. Customers can have peace of mind knowing that their private information is in safe hands. This also provides more customer loyalty for the financial institution, there are a lot of benefits that can be gained by both the customer and financial institutions, that’s why it’s important that everyone comply with the GLBA standards.
Gramm Leach-Bliley Act – Compliance For Auto-Dealers
There are people that run top automobile dealerships in town but they don’t give a damn about complying with the Gramm Leach Bliley act, honestly speaking when they’re caught that might be the end of their business. As an auto dealer, you must give attention to the GLBA standards, this is a must for any auto dealer that offers credit or arranges to lease. You should be able to tell your customers how you handle the information you collect from them, how you protect such information and reveal any third party you’re sharing the information with, you should also give them the option to deny sharing their info with third parties if they’re not interested.
Every dealership has different policies and requirements, but there are general rules that apply when it comes to the Act. First, you need to draft a privacy notice; this should give your customers concise and clear details on your practices and policies. The Federal Trade Commission states the manner in which you categorize your policies, you should categorize under the following;
- Collected information.
- Disclosed information.
- Third parties you’ll share information with.
- The type of information you disclosed.
Who Should You Share Privacy Information With?
It is not right to share private information with anyone that walks into your business just like you’re giving a free gift to the public. You can only share information if you have the customer’s consent and the person you’re giving the information has done some potential transaction with you and is not affiliated with any third party which can, in turn, use the information collected. He should state clearly how he intends to use the data and should also comply with the Gramm Leach Bliley Act.
How Customers Can Protect Their Privacy
Make sure to opt out sharing of customer data with third parties from all insurance, financial and brokerage companies. If they are trustworthy you might consider opting-in if you believe you’re going to get beneficial offers from them. In some situations, you should restrict the type of personal information you give to the government and financial institutions especially if you’re new to using them. Unless it’s mandatory don’t give out your contact details. Don’t reveal your Social Security Number unless it’s for employment purposes such as a bank account opening or for tax purposes.
Don’t reveal personal information through the phone or email unless you clearly know the company or person you’re dealing with. You should not share any sensitive data through any online platform unless you fully know and trust the person or the company you’re dealing with. If you believe your private information is compromised you should contact an attorney for proper advice. At Massey & Duffy we specialize in dealing with such cases, call us now for a free consultation.