Discuss the Gramm-Leach-Bliley Act of 1999 as if you were explaining it to a new paralegal or attorney who knows nothing about bankruptcy law

Question

What will be an ideal response?

Answer 1

The Gramm-Leach-Bliley Act of 1999, also known as the Financial Services Modernization Act of 1999, 15 U.S.C. §§ 6801-6809, requires financial institutions to limit the disclosure of consumers' personal financial information, to advise consumers of the institution's privacy policies, and to allow consumers to opt out of sharing their personal financial information. Consumers see this law in action every time they receive a privacy notice or privacy policy insert in their bank or credit card statements. The financial institution may disclose such information to its business affiliates, and this provision in the statute is not affected if the consumer selects the opt-out provision. Although consumers may opt out of disclosures to third parties, limited financial information included in the bankruptcy petition and related documents is public record and, unfortunately, bypasses the opt-out provisions of the Gramm-Leach-Bliley Act.