California Financial Privacy Law to Take Effect
Jennifer Coleman of the AP reports in the San Francisco Chronicle on a US District Court decision today that threw out a challenge by several banking associations to a new California financial privacy law scheduled to take effect tomorrow.
U.S. District Judge Morrison C. England Jr. disagreed with the three trade associations -- the American Bankers Association, the Financial Services Roundtable and Consumer Bankers Association -- and dismissed their lawsuit.The three groups had argued the federal Fair Credit Reporting Act, reauthorized in December, lets banks and other financial institutions share information with their affiliates about customers' "credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living."
England ruled the Fair Credit Reporting Act only covered sharing of information for credit reports, and not financial privacy. The federal Graham-Leach-Bliley Act, which was crafted to govern financial privacy, allows states to enact stricter rules, England said.
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