Expert Says Data Mining of Check Images Legal
Certain types of data mining activity from check images is permissible, according to W. John Funk, Esq., a shareholder and director at New Hampshire-based law firm Gallagher, Callahan & Gartrell. Many banks create and maintain check image archives on behalf of their customers, thus wielding control over a potentially valuable source of marketing information. Funk says that exemptions in both the Gramm-Leach-Bliley Act and the FCRA could allow banks to use this information for profit. However, banks would have to state their practices within their privacy notices to consumers, and provide opt-out provisions if any information were to be shared outside of the bank.
Data Mining on Check Images OK, Says Legal Expert Tech Web, July 28, 2003
