What is the Gramm-Leach-Bliley Act?

The Gramm-Leach-Bliley Act (GLBA) is a federal law passed in 1999 that regulates the way financial institutions collect, use, and share customers’ personal financial data with third parties. GLBA applies to all banks, credit unions, stock brokers, savings and loan associations, insurance companies, and other financial organizations operating in the state of Indiana. GLBA’s main purpose is to provide customers with greater privacy and security in regards to their personal financial information. Specifically, under GLBA, financial institutions must give customers a notice of their privacy policy that explains how their personal data is collected, used, shared and protected. Institutions must also explain the types of non-public information they collect and the types of third-party companies they may share it with. Additionally, financial institutions must ensure the security of the data by implementing procedures and safeguards to protect unauthorized access, use, or disclosure of customer information. GLBA also requires financial institutions to provide customers with an opt-out option, allowing them to opt out of having their personal data shared with third parties. Finally, GLBA ensures financial institutions can no longer discriminate against customers based on their credit history. These measures are intended to provide customers with greater privacy and security in regards to their personal financial information.

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What is the Gramm-Leach-Bliley Act?

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