Financial Privacy Breach Notification Act of 2005
Latest action (9 Jun 2005): Introduced
What this bill does
The Financial Privacy Breach Notification Act of 2005 would amend the Gramm-Leach-Bliley Act to require financial institutions to notify customers when there has been, or is reasonably believed to have been, a breach of personal financial information—defined as a person's last name combined with an unencrypted Social Security number, driver's license number, or account/card number with an access code. Notification must also go to consumer reporting agencies and, for large breaches, to law enforcement, and must be made promptly, though it may be delayed at the request of law enforcement to avoid compromising an investigation. The bill specifies acceptable notification methods (written, electronic, email, website posting, or media notice in certain cases) and required content, including informing customers that a fraud alert will be placed on their credit file. Institutions with an existing, compliant information security program that follows consistent internal notification policies would be deemed in compliance.
The bill primarily affects financial institutions and other entities that maintain personal financial information on their behalf, as well as consumers whose data may be exposed in a breach. It gives customers a right to sue for damages from violations and allows injunctions against noncompliant institutions, with the Federal Trade Commission authorized to enforce the law and issue implementing rules.
The bill was introduced in the Senate on June 9, 2005, by Senator Jon Corzine and referred to the Committee on Banking, Housing, and Urban Affairs. It did not receive a vote and did not advance further in the 109th Congress.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Financial Privacy Breach Notification Act of 2005 - Amends the Gramm-Leach-Bliley Act to require a financial institution to promptly notify the following entities whenever a breach of personal information has occurred at such institution: (1) each customer affected by such breach; (2) certain consumer reporting agencies; and (3) appropriate law enforcement agencies.
Requires any person that maintains personal information for or on behalf of a financial institution to promptly notify the institution of any case in which such customer information has been breached. Prescribes notification procedures.
Authorizes a customer injured by a violation of this Act to institute a civil action to recover damages.
Authorizes the Federal Trade Commission to enforce compliance with this Act, including the assessment of fines for violations.
Common questions
- What does S. 1216 do?
- The Financial Privacy Breach Notification Act of 2005 would amend the Gramm-Leach-Bliley Act to require financial institutions to notify customers when there has been, or is reasonably believed to have been, a breach of personal financial information—defined as a person's last name combined with an unencrypted Social Security number, driver's license number, or account/card number with an access code. Notification must also go to consumer reporting agencies and, for large breaches, to law enforcement, and must be made promptly, though it may be delayed at the request of law enforcement to avoid compromising an investigation. The bill specifies acceptable notification methods (written, electronic, email, website posting, or media notice in certain cases) and required content, including informing customers that a fraud alert will be placed on their credit file. Institutions with an existing, compliant information security program that follows consistent internal notification policies would be deemed in compliance. The bill primarily affects financial institutions and other entities that maintain personal financial information on their behalf, as well as consumers whose data may be exposed in a breach. It gives customers a right to sue for damages from violations and allows injunctions against noncompliant institutions, with the Federal Trade Commission authorized to enforce the law and issue implementing rules. The bill was introduced in the Senate on June 9, 2005, by Senator Jon Corzine and referred to the Committee on Banking, Housing, and Urban Affairs. It did not receive a vote and did not advance further in the 109th Congress.
- Has S. 1216 become law?
- Not yet. As of 9 Jun 2005, S. 1216 is introduced.
- Who sponsored S. 1216?
- S. 1216 was sponsored by Sen. Jon Corzine [D-NJ, 2001-2006] (Democrat-NJ), with 1 cosponsor.
- What's the latest action on S. 1216?
- Introduced (9 Jun 2005).
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