[Congressional Record (Bound Edition), Volume 147 (2001), Part 5]
[Senate]
[Pages 6409-6410]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          INFORMATION BROKERS

  Mr. NELSON of Florida. Mr. President, the Washington Post reported 
this morning that several prominent banks, insurance companies and law 
firms regularly purchased consumers' confidential financial information 
from an information broker that illegally gathered the data using 
``pretext'' calling. This despicable practice involves a caller who 
contacts a business or government entity and uses a person's social 
security number or other personal identifier to trick an unsuspecting 
clerk to provide confidential information about everything from a 
person's checking account balance to her investment portfolio.
  The prohibition against this fraudulent practice was recently 
strengthened by Congress through the Gramm-Leach-Bliley Act, but 
reports of abuse have continued. Information brokers with little regard 
for people's privacy

[[Page 6410]]

are doing the dirty work for organizations that otherwise portray 
themselves as privacy proponents. These so-called information brokers 
allow companies seeking such information to cut corners at the expense 
of consumers.
  And the apparent willingness of some in the financial industry to 
purchase such information calls into question the industry's commitment 
to protecting consumers' privacy. Further, if companies buy information 
from suspect sources, there are limited prohibitions on redistributing 
it.




  If a company isn't required to get a customer's express consent prior 
to selling, sharing or disclosing his information, then the customer 
has little opportunity to stop the spread of inaccurate information.
  Earlier this year, I introduced legislation that, if passed, would 
help minimize the collateral damage that can occur when financial 
institutions purchase information from these suspect firms. My bill 
would require a consumer's express consent before a financial company 
can share personally identifiable financial information with its 
affiliates and express written consent before it can transfer 
personally identifiable medical information. I want to put the 
consumers in control. Consumer control ensures that personally 
identifiable information is only used for the purpose it was gathered 
for and protects consumers from the further spread of inaccurate 
information.
  Too often these days, personally identifiable medical and financial 
information is being shared, bought, or sold; and, it's being done 
without the consent of the consumer. This practice must stop. And it is 
our job to pass legislation that will stop it.
  I call on my colleagues in the Banking committee to move forward with 
this legislation as soon as possible, so that it can be considered by 
the full Senate. Now is the time to close the financial privacy 
loophole so that we prevent a further erosion of our privacy rights.

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