Re: Gram-Leach-Biley Act Privacy Rule, 1.6 Cfr Part 3 13 Comment

By Wade, Louis J.

Book Id: WPLBN0000130733
Format Type: PDF eBook
File Size: 0.2 MB
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Title:	Re: Gram-Leach-Biley Act Privacy Rule, 1.6 Cfr Part 3 13 Comment
Author:	Wade, Louis J.
Volume:
Language:	English
Subject:	Trade, Import and export controls, Federal Trade Commission (U.S.)
Collections:	Economics Publications Collection, Federal Trade Commission
Historic Publication Date:
Publisher:	Government Printing Office


Citation APA MLA Chicago Wade, L. J. (n.d.). Re: Gram-Leach-Biley Act Privacy Rule, 1.6 Cfr Part 3 13 Comment. Retrieved from http://www.gutenberg.us/

Description
Government Reference Publication

Excerpt
Dear Secretary: I urge the Commission to revise the Proposed Rule referenced above to expressly exclude debt collection agents from the definition of financial institution. A correlative revision is also required to ensure that the interaction between collection agents and account debtors is not subject to an interpretation that a customer relationship exists. This revision comports with the intent of both the Gramm-Leach- Bliley Act (the Act) and the Proposed Rule. In addition, this amendment will divert a potential flood of litigation attempting to impose liability against inappropriate parties. The Biggest Concern The Proposed Rule allows an interpretation of the Act that defines third party debt collectors as financial institutions whose interactions with consumers constitute customer relationships, thereby triggering the full panoply of notice requirements. The proposed definition of a financial institution appears to include debt collection agents and, contrary to the Commission's express belief, the broad definition of customer relationship lends itself to being applied to debt collection agents. Of course, it is only through an onslaught of litigation that these and other questions will be raised and answered.