CONSUMER PRIVACY - CREDIT BUREAUS/FINANCIAL INSTITUTIONS

While apparently well-intentioned, the message below being circulated to consumers by e-mail contains misleading and confusing information:

"Effective July 1st your credit info will no longer be confidential unless you opt out! Your privacy is at risk! Just wanted to let everyone know who hasn't already heard, the four major credit bureaus in the US will be allowed, starting July 1, to release your credit info, mailing addresses, phone numbers, etc., to anyone who requests it. If you would like to 'opt out' of this release of your info, you can call 1-888-567-8688. It only takes a couple of minutes to do.

"Once the message starts you'll want option #2 (even though option #1 refers to this E-mail) and then option #3 - Be sure to listen closely, the first option is only for a two-year period. Make sure you wait until they prompt for the third option, which opts you out forever. I received their paperwork in the mail confirming my 'opting out" within less than one week of making the call. PASS THIS MESSAGE ON TO ALL IN YOUR ADDRESS BOOK AND YOUR PERSONAL FRIENDS who aren't even on a PC......."

Credit Bureaus

• Under the Fair Credit Reporting Act, credit bureaus can release your credit information to people with a legitimate business need. The credit bureaus also can sell lists that are used by companies to make unsolicited offers for credit and insurance.
• Consumers who want to have their names removed from the lists compiled by the three largest credit bureaus in the United States (Equifax, Experian and Trans Union) can call toll free: 888-5OPT-OUT [888-567-8688]
• The toll-free number to opt out of credit bureau lists has been available to consumers for years. A 1996 amendment to the federal Fair Credit Reporting Act required the credit bureaus to maintain the toll-free service. Therefore, if you do not want your name included on these lists, you can call the phone number listed on the email and provide information necessary to confirm your identity, which may include your Social Security number.
• The e-mail above is incorrect in stating that credit bureaus will be able to release credit information to anyone who requests it. That is not, and never has been, the law.
  
  

Financial Services Companies

• The toll-free number in the e-mail has nothing to do with a federal law that took effect July 1, 2001. The Financial Services Modernization Act, also known as Gramm-Leach-Bliley, requires banks, insurers and other financial services companies you do business with to notify you annually in writing about what personal information they collect and what they do with that information.
• If you haven't yet acted on your right to opt out of information sharing by your bank, insurer or other financial services companies, you still can. Contact your financial institutions to find out how to exercise this right. Initially, financial institutions had until July 1, 2001 to inform you of your ability and the process to opt out. That initial notice requirement may be where the date in the e-mail above comes from. The law allows consumers to opt out at any time.
• Calling the number in the email and following the directions for opting out will prevent credit bureaus from providing your information to banks and others for purposes of making unsolicited credit offers, but will not affect disclosure of your information by financial institutions. To opt out of the information sharing by financial institutions, you must contact your bank, insurance company and other financial services companies.
• It is important that you read the privacy notices carefully to find out what information the companies you do business with collect and how they use or disclose it. If you wish to restrict disclosure of your personal information more than required by law, you can look for companies with more restrictive privacy policies.
• Privacy advocates suggest writing companies you do business with to express your desire for more restrictive privacy policies and to request that they further limit the sharing of information.