Federal Regulators Propose Affiliate Marketing Rules
Federal regulators have proposed long-awaited affiliate marketing rules that would help implement the Fair Credit Reporting Act of 2003, which requires banks, thrifts and credit unions to give consumers a chance to opt out of most efforts to share personal financial information with corporate affiliates.
The proposed rules would have a direct effect on holding companies that own life insurance companies along with banks, thrifts or credit unions.
The U.S. Treasury Department and other financial institution regulatory agencies are asking members of the public to submit comments on the proposed rules to the Federal Trade Commission by Aug. 16.
The American Council of Life Insurers, Washington, says its privacy experts, outside counsel and member companies still are preparing the ACLIs comment.
“We have a number of concerns,” says ACLI spokesman Jack Dolan. “The draft appears to us at first read to go beyond the intent of Congress.”
The ACLI believes the final version of the affiliate marketing rules should use the precise language Congress enacted in FCRA, Dolan says.