What is the Graham-Leach Bliley Act of 1999?

The Graham-Leach Bliley (i.e., GLB) Act requires financial institutions to take steps to ensure the security and confidentiality of customer records such as names, addresses, phone numbers, bank and credit card account numbers, income and credit histories, and Social Security numbers. The GLB Act broadly defines financial institution as any institution engaging in the financial activities enumerated under the Bank Holding Company Act of 1956, including making, acquiring, brokering, or servicing loans and collection agency services. Because higher education institutions participate in financial activities, such as making Federal Perkins Loans, FTC regulations consider them financial institutions for GLB Act purposes. The GLB Act spells out several specific requirements regarding the privacy of customer financial information. The law imposes two fundamental requirements: explicit notification of information-sharing policies and the means for customers to "opt out" of those practices. ...  more