The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data. Another important component of the GLBA is the Safeguards Rule, which requires financial institutions to protect the consumer information they collect. Since the GLBA applies to electronic and paper-based information, safeguards could include firewalls and encryption software as well as secure document disposal.
What Information Falls Under GLBA?
The GLBA governs any financial information provided by a consumer to a company that offers financial products or services that could be used, along with demographic information, to identify that individual. This can also include, but is not limited to, payment histories, the assessed value of homes, insurance policies, employment verifications, and any information with an individual’s name, contact information, or social security number.
Regulations
The Federal Trade Commission administers the GLBA, and compliance is mandatory. There can be severe consequences if a company does not comply. A financial institution can be fined up to $100,000 for each violation, and the institution’s officers and directors can be fined up to $10,000 for each violation.
Secure GLBA Shredding
Shred Nations ensures that well-trained and prepared individuals are in charge of destroying your confidential information. When Shred Nations securely destroys GLBA documentation, you will receive a certificate of destruction for your records.
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