Banks Play Chicken Little on Privacy
The banking industry has started playing "Chicken Little" in anticipation of Congressional action that is likely to increase privacy protections. In statements to a Delaware newspaper, a Bank of America spokesperson claims that institutions will have to set up separate call centers to handle consumer requests if opt-in privacy laws pass. However, even in an opt-in framework, federal law would clearly allow information sharing when necessary to administer transactions, to service, or to maintain an account.
In 2002, before North Dakota residents were to vote on a reference establishing opt-in financial privacy protections, the banking industry ran advertisements claiming that increased privacy protections would prevent automated teller machines (ATM) from working in the state. Other advertisements depicted a great wall being erected around the state if privacy laws passed. To contradict the claim that ATMs would no longer function, the North Dakota Attorney General issued a formal opinion showing that the machines would still operate. The residents ultimately approved opt-in by a 73% vote.
Privacy policies confuse the public, Critics prefer 'opt-in' system to protect information, Delaware News Journal, January 19, 2003.
Protect Our Privacy, Site Devoted to North Dakota Opt-In Financial Privacy Legislation.
