Gramm Leach Bliley Act
The Gramm Leach Bliley
Act contains numerous requirements dealers must comply with by July 1,
2001. Included on this website is a summary of
frequently asked questions, rules describing
when a notice is required, and copies of the various Privacy Notices you
will need. This Dealer Advisory is a summary of a new and complex Federal
law. You are encouraged to seek advice from counsel as to whether your
dealership is in compliance by July 1, 2001.
There are three different
Privacy Notices. You will need to choose the one that best fits your
situation. You will also need to customize the language in brackets and bold
to fit your situation.
Initial Privacy Notice. This notice
must be used if you accept an application for financing, sign an Installment
Sales Contract or Lease or give consumer information to companies performing
marketing services for you, send out holiday cards, come-back-and-see-us
cards, or other mailings and the company has signed an agreement with the
dealership in which they agree not to use the information for any purpose
other than for the marketing service.
Annual Privacy Notice. This notice is
an example of a Privacy Notice you would send annually. You may use this
one only if you will have a continuing relationship in excess of one year.
Privacy Notice with Opt-Out Requirement.
You must use this notice if you make any disclosures not covered by the
exception or if you do not currently make disclosures outside of these
exceptions, but you wish to reserve the right to do so in the future.
I have included a
customer acknowledgment at the bottom of each sample. The regulation does
not require this, but I recommend it so you can prove you gave the notice.
(Be sure to keep a signed and dated copy in the file.)
Important notice: If you share consumers’ or customers’ credit-related information
with affiliates, you may need to take additional steps. Depending on what
types of information you share with affiliates, you may be required to
include, within your privacy notice, a disclosure regarding the Fair Credit
Reporting Act. The form notices mentioned above do not contain the
Fair Credit Reporting Act Notice.