How to Read Your Financial Services Privacy Notice

A new federal law, the Financial Services Modernization Act, gives consumers some rights to protect their personal financial information. It outlines the circumstances when financial service companies must allow you to limit the sharing of their information and outlines the steps consumers must take to do so. As a result you periodically receive notices in your mailbox from your bank, broker, or insurance company notifying you of their privacy policy.

The law provides only limited protection, however, and the notices receive from financial institutions apprising you of your rights may often be confusing and difficult to understand. For guidance in understanding your privacy notice and exercising choice, the Privacy Rights Clearinghouse provides important information.