What is the Right to Financial Privacy Act?

The Right to Financial Privacy Act (RFPA) is a federal law passed in 1978 to protect the financial privacy of consumers. It applies to financial institutions, such as banks, savings and loans, and credit unions, that are regulated by the federal government. The law gives customers the right to withhold personal financial information from government agents seeking to access or obtain it. Under the RFPA, customers must receive a notice before a financial institution can disclose their financial records to any government agency. The customer must have the right to challenge the disclosure in court and have the opportunity to read the records requested by the government. The Right to Financial Privacy Act applies to all federal, state, and local government agencies, including state and local law enforcement, and the Internal Revenue Service. In California, the California Financial Privacy Act provides additional protections over customer financial data held by banks, credit unions, and other financial institutions. This state law requires financial institutions to notify customers of any requests for personal financial information. Customers have the right to challenge the disclosure in California court, with the opportunity to read the records.

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What is the Right to Financial Privacy Act?

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