Why was the GLB Act enacted?

Understanding the Gramm-Leach-Bliley Act of 1999 (GLBA)

Due to the remarkable losses incurred as a result of 1929’s Black Tuesday and Thursday, the Glass-Steagall Act was originally created to protect bank depositors from additional exposure to risk, associated with stock market volatility.

Who enforces the GLB Act?

the FTC
The GLBA is enforced by the FTC, the federal banking agencies, and other federal regulatory authorities, as well as state insurance oversight agencies.

What was the purpose of the Gramm-Leach-Bliley Act of 1999?

The purpose of the GLB Act is to ensure that financial institutions and their affiliates safeguard the confidentiality of personally identifiable information (PII) gathered from customer records in paper, electronic or other forms.

What is the main purpose of the Gramm-Leach-Bliley Act quizlet?

The GLBA’s purpose was to remove legal barriers preventing financial institutions from providing banking, investment and insurance services together.

Which of the following would not be covered by the GLB Act?

Which of the following would not be covered by the GLB Act? The answer is: D. Appraiser. The Gramm-Leach-Bliley Act requires financial institutions to give privacy notices to consumers, explaining their information-sharing policies.

When was the Safeguards Rule originated?

The Safeguards Rule was published in the Federal Register one year ago [67 Fed Reg 36484 (May 23, 2002)] and can be found on the Federal Trade Commission Web site at http://www.ftc.gov/privacy/privacyinitiatives/safeguards.html.

What does the GLB say about how the initial privacy notice may or should be given?

The GLBA privacy rules, as enforced by the various regulators, generally require: Clear and conspicuous notice of the financial institution’s information-sharing policies and practices, including what information it collects and with whom it shares the information.

What rule within the GLB Act governs the collection and disclosure of nonpublic personal information to third parties?

The Fair Credit Reporting Act

The GLB Act requires these disclosures to be made as part of any privacy policy you give to your consumers or customers.

What was the first law that Congress enacted to combat predatory lending?

Dodd-Frank: Title XIV – Mortgage Reform and Anti-Predatory Lending Act.

What is considered personally identifiable information that is protected by the GLB Act?

So, the rule definition of personally-identifiable financial information is any information that a financial institution obtains about a consumer— everything from the value of a consumer’s home obtained in the process of approving a loan, to the fact that an individual even has a loan with a particular institution.

When should a privacy notice be given?

You must provide an “initial notice” by the time the customer relationship is established. If this would substantially delay the customer’s transaction, you may provide the notice within a reasonable time after the customer relationship is established, but only if the customer agrees.

When must a privacy notice be provided to the customer?

within a reasonable period of obtaining the personal data and no later than one month; if you use the data to communicate with the individual, at the latest, when the first communication takes place; or. if you envisage disclosure to someone else, at the latest, when you disclose the data.

Can initial privacy notices and opt out notices be combined?

The Privacy Rule does not prohibit you from combining your privacy notices with other information. However, you still must comply with all applicable requirements, such as those governing form, content, and delivery of notices.

What is the model privacy notice 2010?

The final model privacy notice form was released by eight federal regulatory agencies on Tuesday and is designed to help consumers understand how financial institutions collect and share personal information. … The model form issued can be used by financial institutions to comply with these requirements.

Which of these requires companies to give consumers privacy notices that explain the institutions information-sharing practices?

The GLB Act requires companies to give consumers privacy notices that explain the institutions’ information-sharing practices. In turn, consumers have the right to limit some – but not all – sharing of their information.

When must the initial GLBA privacy notice be provided to consumer customers?

A financial institution must provide an annual notice at least once in any period of 12 consecutive months during the continuation of the customer relationship. Generally, new privacy notices are not required for each new product or service.

What are the two significant parts of the Gramm-Leach-Bliley Act?

The GLBA requires companies that qualify as “financial institutions” to take several affirmative steps in order to prevent the unauthorized collection, use, and disclosure of NPI. It imposes these obligations under two “Rules”: (i) the Privacy Rule, and (ii) the Safeguards Rule.

Is date of birth nonpublic personal information?

Non-sensitive personally identifiable information is easily accessible from public sources and can include your zip code, race, gender, and date of birth.

What is the purpose of the privacy notice?

Privacy Notice: A statement made to a data subject that describes how the organization collects, uses, retains and discloses personal information. A privacy notice is sometimes referred to as a privacy statement, a fair processing statement or sometimes a privacy policy.

What is NPI Gramm-Leach-Bliley Act?

This act, otherwise known as GLBA, is a federal law that protects customers’ non-public personal information, otherwise known as NPI. NPI is any personally identifiable financial information a customer provides to obtain a financial service or product.

What is Title V of the Gramm-Leach-Bliley Act?

Title V, subtitle A, of this Act (15 U.S.C. § 6801 et seq.) requires the FTC, along with the Federal banking agencies and other regulators, to issue regulations ensuring that financial institutions protect the privacy of consumers’ personal financial information.

When should the privacy notice required under the Gramm Leach Bliley Act be provided to customers?

A financial institution must provide an annual notice at least once in any period of 12 consecutive months during the continuation of the customer relationship unless an exception to the annual privacy notice requirement applies. Generally, new privacy notices are not required for each new product or service.