The House Committee on Financial Services recently advanced a bill that would increase consumers’ access to lender privacy policies and modernize the privacy notification process of auto lenders.
The Privacy Notification Technical Clarification Act would close a loophole presented in a 2015 bill that requires financial institutions provide privacy policies to customers when they first receive a loan. After that, institutions are only required to mail customers copies of policies if there has been a policy change.
Many loan lenders, including auto lenders, were not included in the previous legislation and were not required to update their privacy policy notification processes.
The clarification act would require auto lenders to post their privacy policies on their websites if they opt out of mailing annual notices. A hard copy must be provided if a customer requests it.
“This critical legislation finally allows auto lenders to modernize their privacy notification process, cutting down on the high compliance costs they’re forced to pass along to consumers while increasing consumer access to important privacy information,” Rep. Dave Trott (D-MI), who authored the bill, said. “In Michigan, the heartland of our nation’s domestic auto industry, legislation that decreases the burden placed on the auto industry, helps provide more loans for American families, and provides greater clarity and access to information for automotive consumers is a good deal for everyone.”