The pretexting provisions of the GLB Act
protect consumers from individuals and companies attempting to obtain their personal financial information under false pretenses, a practice known as pretexting.
A study done by a professor at the University of Arkansas says the GLB Act
has had little effect on bank profitability.
The court disagreed, writing, "Despite Guin's persistent argument that any nonpublic personal information stored on a laptop computer should be encrypted, the GLB Act
does not contain any such requirement.
The GLB Act
, effective November 13, 2000, allows mergers of financial institutions and regulates the disclosure of NPI.
Section 503 of the GLB Act
requires financial institutions to provide a notice to each customer that describes the institution's policies and practices regarding the disclosure to third parties of nonpublic personal information.
Howard Beales, director of the FTC Bureau of Consumer Protection, wrote in an April letter to the ABA that although the FTC recognizes the issues raised regarding the application of the GLB Act
to lawyers, there are "significant questions as to the legal authority of the commission" to grant the exemption requested by the ABA.
Beginning July 1, 2001, the GLB Act
required financial institutions to provide notice and an opportunity to opt-out of disclosures of "nonpublic personal information" to nonaffiliated third parties (exceptions apply).
Gramm, on the other hand, had unwaveringly declined to deal with privacy issues, claiming the GLB Act
and its privacy rules needed more time to work after their implementation this past July.
Meanwhile, Congress managed to pound out the GLB Act
, which included its own set of carefully crafted privacy rules to limit the disclosure of "nonpublic personal information" about individuals who obtain financial products or services for personal, family, or household purposes.
The 12-page summary provides guidance to Appraisal Institute members on the privacy disclosure requirements of the GLB Act
and is designed to assist them in complying with those requirements.
Community advocates have been concerned that the GLB Act
, which allows financial institutions to merge with other financial institutions with few restrictions, will significantly erode the scope of CRA by creating a two-tiered banking and lending industry.
The GLB Act
deregulated the financial services industry by removing some barriers that separated commercial banking from investment banking, merchant banking and insurance.