By law, all financial institutions must offer their customers the chance to opt out, by notifying the company that they don't want their personal data passed on to third parties. If you provide this notification, your information can't be sold to outside marketers and other agencies — although in almost all states consumers can't prevent financial firms from sharing their information with affiliates and partners.
Companies must inform customers how to opt out in the privacy notice that they send out annually or when a new account is opened. You can usually opt out by writing a letter, sending in a form, or calling a toll-free number. If you threw out or misplaced your last privacy notice, you can call the financial firm for instructions.
Every financial services firm has a different privacy policy, so it's important to read the notifications you receive carefully, and follow the instructions for opting out, if you choose to do so. If you're not happy with the measures taken to protect your privacy, you can shop around to find a company that meets all your needs.
A tougher standard
A few states, including Vermont and New Mexico, follow stricter opt-out rules for the sharing of customer information. In these states, financial services companies must receive the explicit consent of their customers before they can pass on their information to unaffiliated (and, in the case of New Mexico, affiliated) third parties. Other states, including California, are debating whether to adopt this tougher opt-in standard.
If you feel strongly about being assured greater protection for privacy rights, contact your U.S. representative or senator, or send a letter of petition to the Federal Trade Commission (FTC).
The fine print
While it's illegal for financial firms to sell or share your credit card account numbers with outside parties, they can, by law, share that information with affiliated companies, including marketing partners and service providers.
