What Is The Gramm-Leach-Bliley Act?
Gramm-Leach-Bliley is an Act of Congress that strengthens consumer privacy. Its requirements force lenders to hold borrower personal information as sacred and not share it unnecessarily with other parties. Among the protections it offers consumers of loans and other financial products are:
- Your lender must disclose to your any intent to share your private information with another party
- You have a right to direct your lender not to share your personal information
- A lender may not share account numbers and similar information to other parties for marketing purposes
In addition, your lender must provide you with a written policy of its privacy protection practices annually. This written statement should address the lender’s policy regarding disclosures of personal information with third parties, disclosures of personal information of people who are no longer customers of the institution, and how the lender protects consumer information. Your lender must keep you informed of which types of third parties may gain access to your personal information, the categories of personal information it may share with such parties, and the lender’s policies for protecting your information.
Failure to comply with the Gramm-Leach-Bliley Act could lead to stiff penalties for your lender. A mortgage document review can determine if your lender is in violation of the Act.