Financial Act Overhaul Gets Data Protection Amendment
Consumers came closer late last week to winning the right to keep banks, securities firms and insurance companies from sharing their personal data with outside firms — including list companies and direct marketers — when the House passed (343-86) the Financial Services Act overhauling the financial services industry.
House Republican leaders pressed for the privacy protections during debate on the measure (HR-10) sponsored by Rep. James Leach (R-IA), allowing banks, securities firms and insurance companies to merge.
House Democrats pressed for stricter privacy protections which would have prohibited banks, securities firms and other financial companies from sharing customer information with affiliated companies in addition to outsiders.
In a near unanimous vote, 427-1, the House approved adding the privacy protections to the bill as proposed by Rep. Michael Oxley (R-OH). Rep. Ron Paul (R-TX), cast the lone dissenting vote as six others abstained from voting on the proposal.
Under the Oxley amendment, banks, insurance and other financial companies would have to obtain authorization in writing from consumers before they could make such information as name, address, telephone number, date of birth, Social Security number, checking and credit card account data, available to direct marketing companies, list companies and telemarketers.
After the vote, the Associated Press quoted Oxley as saying that the addition of his amendment to the bill provided “strong new protections for consumer privacy.”
Oxley’s amendment was one of nearly two dozen that were offered during lengthy debate on the White House-backed measure which differs substantially from the one passed by the Senate in early May. The measure now goes to a conference committee to be reconciled into one which again would have to be approved by both chambers.
House and Senate leaders are expected to make their appointments to the conference committee later in the month.
