CIS/Index
Copyright © 1999, Congressional Information
Service, Inc.
2000 CIS H 2417
TITLE: Financial
Privacy
CIS-NO: 2000-H241-7
SOURCE:
Committee on Banking and Financial Services. House
DOC-TYPE: Hearing
Retrieve
the full text of testimony
DATE: July 20, 21, 1999
LENGTH: v+548 p.
CONG-SESS: 106-1
ITEM-NO: 1013-A;
1013-B
SUDOC: Y4.B22/1:106-32
MC-ENTRY-NO: 2000-9145
INCLUDED IN LEGISLATIVE HISTORY OF: P.L.
106-102
SUMMARY:
Committee Serial No. 106-32.
Hearings before the Subcom on Financial Institutions and Consumer Credit to
consider H.R. 10, the Financial Services Act of 1999, to revise regulation of
the financial services industry.
Includes provisions to:
a. Make unlawful the use of false pretenses to obtain
consumer information maintained by financial institutions.
b. Prohibit financial institutions, including health
insurance companies, from sharing customer information with any
non-affiliated organization for the purpose of third-party marketing, unless the
customer opts out of the protection.
c. Restrict the right
of health insurance companies and their affiliates to disclose individually
identifiable consumer medical information.
Supplementary material (p. 113-548) includes witnesses' written statements
and written replies to Subcom questions, reports, submitted statements, and
correspondence.
CONTENT-NOTATION: Consumers financial
info privacy protections estab; medical info
confidentiality protections estab
BILLS: 106
H.R. 10
DESCRIPTORS:
FINANCIAL INSTITUTIONS; BANKS AND BANKING; FINANCIAL REGULATION; RIGHT OF
PRIVACY; INFORMATION SERVICES AND SYSTEMS; CONSUMER PROTECTION;
FRAUD; MARKETING; INSURANCE COMPANIES; MEDICAL REGULATION;
HEALTH INSURANCE; MEDICAL ETHICS; HEALTH FACILITIES AND
SERVICES; COMPETITION; FINANCIAL SERVICES ACT
00-H241-7 TESTIMONY NO: 1
July 20, 1999 p. 11-26, 125-212
WITNESSES (and
witness notations):
LITAN, ROBERT E. (Co-Director,
AEI-Brookings Joint Center for Regulatory Studies)
CULNAN,
MARY J. (Professor, School of Business, Georgetown University)
CLAYTON, GARY E. (President and CEO,
Privacy Council)
CATE, FRED H. (Director,
Information Law and Commerce Institute, Indiana University
School of Law, Bloomington)
STATEMENTS AND DISCUSSION:
Need to balance benefits of privacy
protection with costs associated with providing protection; suggestions to
extend H.R. 10 opt-out provision to financial institution affiliates; inadequacy
of H.R. 10 consumer privacy provisions, with recommendations.
Issues related to information privacy on
the Internet; potential unintended consequences of H.R. 10 information
privacy protection measures.
INSERTIONS:
a. Hahn, Robert W.; and Litan, R. E., S. 59, the
Regulatory Right-to-Know Act, and the Congressional Office of Regulatory
Analysis Act, statement prepared for the Senate Governmental Affairs Committee,
Apr. 22, 1999, with bibliography (p. 128-144).
b. Cate, F.
H.; and Varn, Richard J. (Coalition for Sensible Public Records), "Public
Record: Information Privacy and Access -- A New Framework for
Finding the Balance" 1999 (p. 181-212).
CONTENT NOTATION:
Consumers financial info privacy
protections estab
TESTIMONY DESCRIPTORS:
HAHN, ROBERT W.; REGULATORY RIGHT-TO-KNOW ACT;
CONGRESSIONAL OFFICE OF REGULATORY ANALYSIS ACT; BIBLIOGRAPHIES; INTERNET
00-H241-7 TESTIMONY NO: 2 July 20,
1999 p. 27-44, 213-282
WITNESSES (and witness notations):
BARSNESS, ROBERT N. (Chairman and President, Prior Lake
State Bank; representing Independent Community Bankers)
DAVIS, ROBERT R. (Director, Government Relations,
America's Community Bankers)
KLOIBER, MICHAEL D.
(President and CEO, Tinker Federal Credit Union; representing National
Association of Federal Credit Unions and Credit Union National Association)
BARTON, RICHARD A. (Senior Vice President, Congressional
Relations, Direct Marketing Association (DMA))
CONNELLY,
D. BARRY (President, Associated Credit Bureaus)
STATEMENTS AND
DISCUSSION:
Concerns that H.R. 10
information sharing prohibition will negatively impact
community bank competitiveness; adequacy of existing consumer financial
privacy policies at most banks and credit unions;
recommendations to revise H.R. 10 provision permitting financial institutions to
share certain consumer information with affiliates.
Viewed duplicative nature of H.R. 10 opt-out provision in
light of existing direct marketing industry self-regulation; implications of
H.R. 10 for consumer credit reporting agencies.
INSERTION:
-- DMA, "Marketing Online: Privacy
Principles and Guidance" (p. 267-276).
CONTENT NOTATION:
Consumers financial info privacy
protections estab
TESTIMONY DESCRIPTORS:
INDEPENDENT COMMUNITY BANKERS; SMALL BUSINESS; CREDIT
BUREAUS; CREDIT UNIONS
00-H241-7 TESTIMONY NO: 3
July 20, 1999 p. 45-58, 283-330
WITNESSES (and
witness notations):
MIERZWINSKI, EDMUND (Consumer Program
Director, U.S. Public Interest Research Group; also representing Consumer
Federation and Consumers Union)
ROTENBERG, MARC (Director,
Electronic Privacy Information Center)
BRICE, RUTHERFORD (Board Member, AARP)
STATEMENTS AND DISCUSSION:
Need for stricter
regulation of financial institutions sharing of consumer
information; recommendations to amend H.R. 10 to strengthen
consumer protection provisions; issues related to consumer
privacy protection on the Internet.
INSERTION:
-- Moag, Kristin (AARP), "AARP Members' Concerns About
Information Privacy" Public Policy Institute Data Digest, Feb.
1999, with graphs and survey results (p. 325-330).
CONTENT
NOTATION:
Consumers financial info
privacy protections estab; medical info
confidentiality protections estab
TESTIMONY DESCRIPTORS:
U.S. PUBLIC INTEREST RESEARCH GROUP; SURVEYS AND
QUESTIONNAIRES; INTERNET
00-H241-7 TESTIMONY NO: 4
July 21, 1999 p. 65-88, 366-474
WITNESSES (and
witness notations):
GENSLER, GARY S. (Under Secretary,
Domestic Finance, Department of Treasury)
GRAMLICH, EDWARD
M. (Member, Federal Reserve Board)
HAWKE, JOHN D., JR.
(Comptroller of the Currency, OCC)
PITOFSKY, ROBERT
(Chairman, FTC)
NAZARETH, ANNETTE L. (Director, Market
Regulation Division, SEC)
REIDER, GEORGE M., JR.
(Insurance Commissioner, Connecticut; representing National Association of
Insurance Commissioners)
STATEMENTS AND DISCUSSION:
Support for H.R. 10 financial information
protection provisions; objections to H.R. 10 medical records
confidentiality protections; need for stricter consumer privacy
protection in light of increasing use of information sharing
systems; anticipated impact of H.R. 10 information sharing
prohibition on financial services industry competitiveness.
Review of consumer information protection
regulations, including Fair Credit Reporting Act privacy
requirements; views on financial institutions sharing of customer
information with their affiliates; role of States in protecting
consumer information.
CONTENT NOTATION:
Consumers financial info privacy
protections estab; medical info confidentiality protections
estab
TESTIMONY DESCRIPTORS:
NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS; OFFICE OF THE COMPTROLLER OF THE
CURRENCY; FEDERAL TRADE COMMISSION; SECURITIES AND EXCHANGE COMMISSION; STATE
GOVERNMENTS; DEPARTMENT OF TREASURY; FEDERAL RESERVE BOARD; FAIR CREDIT
REPORTING ACT
00-H241-7 TESTIMONY NO: 5
July 21, 1999 p. 89-111, 475-539
WITNESSES
(and witness notations):
FISCHER, L. RICHARD (attorney,
representing American Bankers Association and three other organizations)
BECKER, BRANDON (attorney, representing Securities
Industry Association)
MEYER, ROBERTA B. (Senior Counsel,
American Council of Life Insurance)
FINK, MATTHEW P.
(President, Investment Company Institute)
PALMISANO,
DONALD J. (Dr.) (Board Member, AMA)
HARDING, RICHARD K.
(Dr.) (Vice Chairman, Clinical Affairs, School of Medicine, University of South
Carolina; representing American Psychiatric Association)
STATEMENTS AND DISCUSSION:
Adequacy of existing
regulatory framework and banking industry self-regulation for protecting
consumer financial information; feared adverse effects of H.R.
10 customer information sharing restrictions on financial
services industry competitiveness; need to balance consumer
privacy with insurance companies legitimate sharing of consumer
medical records.
Objections to H.R. 10
definition of health insurance companies as financial institutions, which
permits them to share certain medical information; inadequacy
of H.R. 10 medical records confidentiality protections.
CONTENT NOTATION:
Consumers financial info
privacy protections estab; medical info
confidentiality protections estab
TESTIMONY DESCRIPTORS:
CONSUMER BANKERS ASSOCIATION
LOAD-DATE: July 6, 2001 
