Change Coming To Bankers

Previously, we've pointed out that under existing US banking rules, most financial institutions are required by law to annually mail a printed privacy notice to you, their customer.

A change to that rule is coming soon in that the CFPB has stated its intention to amend Regulation P.  They plan to update it, and modify the rules covering how customers receive notice of what banks do with the personal information they gather.

The actual changes that CFPB has proposed are available here. They are complex, but here are some highlights of what might be expected when Reg P gets its makeover:

Many banks that are currently required to mail the annual privacy notice will now be able to post it electronically for your examination using your smartphone, tablet, laptop, or desktop computer.

When posted electronically, it will be available on a webpage that contains only the privacy notice, displayed continuously in a clear and conspicuous manner.

When posted electronically, the customer will not be required to first provide any information such as login name or password, or to agree to any conditions for access.

When will this be happening? The CFPB published notice of their proposal to update Reg P on May 13, 2014, requesting public comments. That public comment period ended on July 14, 2014, with 126 public comments having been submitted. Presumably, the Bureau is now in their final rulemaking stage.

While the timing of next action is not clear, we commend the CFPB on their initiative in enhancing consumers' privacy awareness and understanding. In today's world of hacks, breaches, and ID thefts, consumer attention is focused on privacy issues like never before. We eagerly await the final rule so that actual implementation of the new enhancements can begin.