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Wednesday, June 14, 2000
The New York State Senate today approved legislation (S.8091), sponsored by Senator Hugh T. Farley (R-C, Schenectady), which would limit disclosure of a customer�s personal information by financial institutions. The bill was a recommendation of the Senate Majority Task Force on Privacy Invasion.
�This bill would give consumers more information about how their personal information may be used by a financial institution and an opportunity to opt-out of having their information disclosed to a third party,� Senator Farley, Chairman of the Senate Banks Committee, said. �It would also help protect consumers from having information about their accounts disclosed for use in marketing through direct mail, e-mail or telemarketing.
�In addition, this bill would require financial institutions to provide consumers with a detailed copy of their privacy policies and practices to ensure the confidentiality of customer records,� Senator Farley said. �With this measure we would ensure that New Yorkers are afforded similar protections in State law as in federal law.�
�The Privacy of Financial Information Act of 2000 is an important part of the Senate�s effort to expand our State laws to protect the personal privacy of individuals,� Senate Majority Leader Joseph L. Bruno said. �The Senate has passed an impressive package of bills that cover almost every aspect of the privacy issue including protecting information and punishing those who would steal or abuse personal information. I hope that the Assembly will join us in our effort to update the state�s laws to address the issue of privacy invasion.�
The Privacy of Financial Information Act of 2000 includes the following provisions:
1 Ensures that consumers may opt-out of having any personal information disclosed to a nonaffiliated third party.
1 Prohibits financial institutions from disclosing an account or access number to a nonaffiliated third party for use in telemarketing, direct mail marketing or e-mail marketing.
1 Prohibits nonaffiliated third parties from disclosing any information that they receive from a financial institution.
1 Requires financial institutions to annually provide customers with a copy of their privacy policy and practices.
1 Directs the State Banking Department and Insurance Department to establish appropriate standards relating to administrative, technical and physical safeguards which are necessary to:
-- Insure the security and confidentiality of customer records and information;
-- Protect against any anticipated threats or hazards to the security or integrity of such records; and
-- Protect against unauthorized access to or use of such records or information.
1 Establishes penalties of up to $5,000 per violation of this act.
The bill was sent to the Assembly.
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