We read with great concern William Safire's essay, "Opt-in privacy laws are needed," on Sept. 24. As representatives of the nation's largest financial institutions, we agree that the invasions of privacy referenced by Mr. Safire are intolerable and, although farfetched, should not be permitted. However, Mr. Safire fails to mention that the financial services bill he refers to includes the strongest, most comprehensive financial privacy protections ever proposed at the national level.
Within HR10, the Financial Services Act of 1999, consumers are given the choice to "opt out" of having their information shared with third parties for marketing purposes. In addition, the practice of obtaining financial information under false pretenses, known as pretext calling, would be outlawed. We support legislation in which insurance companies could disclose health and medical information only with the consumer's consent or for essential business purposes.What is more, these provisions favor Mr. Safire's suggested approach to safeguarding privacy, that of allowing free-market competition to drive industry protection efforts. For the first time, companies would be required to disclose their privacy policies, providing consumers the ability to comparison shop for the policy that meets their protection standards.
We have a vested interest in preserving the customer information that is entrusted to us. We understand that if a customer's information is misused, we loose the customer's trust and business. The dynamics of a free market, combined with the protections under HR10, provide the best incentives to continue responsible industry practices.
Marcia Z. Sullivan
Vice president and director of government relations
Consumer Bankers Association,
Rich M. Whiting
Executive director and general counsel
Financial Services Roundtable