Today, when identity theft has become one of the major crimes that is perpetrated on a daily basis on many unsuspecting people, keeping personal and financial information secure is more important than ever. Most of the cases of identity theft stem from accounts being hacked or information not being kept secure. In fact, privacy and confidentiality is strictly regulated under Federal Law. Federal Regulation P - Privacy of Consumer Financial Information, issues a number of provisions that must be fulfilled by all financial institutions, including loan providers. The primary provisions are as follows and financial providers must:
- Provide their clients or consumers with their privacy policies.
- Inform their clients with regards to the conditions under which they may disclose personal information that has not been made public to a third party.
- Allow customers to opt out of the disclosure policy if they so wish.
However, these provision refer to personal and not financial information. In accordance with The Right To Financial Privacy Act (RTFPA), financial institutions must keep a client or customer's financial information private and confidential. Besides the federal legislature, there are many local state regulations that protect customers’ personal and financial information.
Although it is the financial institution's responsibility to provide consumers with their privacy policies and other security information, it is up to the client at the end of the day to read the information and understand it. To make the most of these loans, always ensure that the financial institution takes measures to keep personal and financial information secure.
