Consumer Financial Privacy Protection Act of 1998
The source supplies the latest action, but no lifecycle stage.
Latest action (5 Aug 1998): Referred to the Subcommittee on Financial Institutions and Consumer Credit.
What this bill does
H.R. 4388, the Consumer Financial Privacy Protection Act of 1998, would amend the Consumer Credit Protection Act to add a new title governing how financial institutions handle customers' personal and financial information. It would require banks, credit unions, brokers, insurers, credit card issuers, and similar institutions to establish safeguards protecting the security and confidentiality of customer records, to collect only information necessary for transactions and account administration, and to limit disclosure of customer information to third parties unless the customer requests it, it's needed to complete a transaction, it's legally required, or the customer receives explicit notice and an opportunity to deny disclosure. Federal regulators would be directed to issue implementing regulations, including model disclosure forms.
The bill would primarily affect financial institutions and their customers. Institutions would face new compliance obligations, including employee training, security procedures, and complaint-handling processes, while customers would gain rights to review and correct their records and to limit sharing of their information. Enforcement would be handled by the Federal Trade Commission and existing federal banking, securities, and commodities regulators, and customers harmed by violations could sue for damages, including a minimum statutory amount, plus attorney's fees. State laws providing greater consumer protection would remain in effect.
The bill was introduced on August 4, 1998, by Rep. John LaFalce and referred to the House Committee on Banking and Financial Services. It did not receive a vote and did not advance further before the end of the 105th Congress.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Consumer Financial Privacy Protection Act of 1998 - Amends the Consumer Credit Protection Act to add a new title entitled the Financial Institution Privacy Protection Act. Declares that financial institutions have an affirmative and continuing obligation to respect the privacy of their customers and to protect the security and confidentiality of customers' financial and personal information. Sets forth a statutory framework within which financial institutions shall establish administrative, technical, and physical safeguards to insure the security and confidentiality of financial and personal records and to protect against anticipated threats or hazards to the security or integrity of such records. Requires the Federal Trade Commission and, for specified cases, the financial regulatory agencies to enforce this Act. Subjects financial institutions to civil liability for harm sustained by a customer as a result of noncompliance with this Act.
Timeline
5 Aug 1998
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Common questions
- What does H.R. 4388 do?
- H.R. 4388, the Consumer Financial Privacy Protection Act of 1998, would amend the Consumer Credit Protection Act to add a new title governing how financial institutions handle customers' personal and financial information. It would require banks, credit unions, brokers, insurers, credit card issuers, and similar institutions to establish safeguards protecting the security and confidentiality of customer records, to collect only information necessary for transactions and account administration, and to limit disclosure of customer information to third parties unless the customer requests it, it's needed to complete a transaction, it's legally required, or the customer receives explicit notice and an opportunity to deny disclosure. Federal regulators would be directed to issue implementing regulations, including model disclosure forms. The bill would primarily affect financial institutions and their customers. Institutions would face new compliance obligations, including employee training, security procedures, and complaint-handling processes, while customers would gain rights to review and correct their records and to limit sharing of their information. Enforcement would be handled by the Federal Trade Commission and existing federal banking, securities, and commodities regulators, and customers harmed by violations could sue for damages, including a minimum statutory amount, plus attorney's fees. State laws providing greater consumer protection would remain in effect. The bill was introduced on August 4, 1998, by Rep. John LaFalce and referred to the House Committee on Banking and Financial Services. It did not receive a vote and did not advance further before the end of the 105th Congress.
- Has H.R. 4388 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 4388. Check the latest action and official source below.
- Who sponsored H.R. 4388?
- H.R. 4388 was sponsored by Rep. LaFalce, John J. [D-NY-29] (D-NY), with 0 cosponsors.
- What's the latest action on H.R. 4388?
- Referred to the Subcommittee on Financial Institutions and Consumer Credit. (5 Aug 1998).
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