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Lawmakers vote 232-198 to continue widespread sharing
of consumers' financial and medical information
WASHINGTON, D.C. - In approving a bill to overhaul the financial services industry this week, the House of Representatives voted to allow widespread sharing of consumers' financial and medical information, according to Consumers Union, the non-profit publisher of Consumer Reports magazine.
While some members of Congress claimed that the bill would provide substantial protection for people's privacy, the House voted late Thursday night to reject privacy measures that would have given consumers more control over their financial data and medical records.
Before lawmakers approved the bill, a vote was taken to decide whether to add stronger controls for consumers' personal information to the bill. Under intense pressure from lobbyists for the financial industry, the House voted 232-198 against putting these privacy protections in the bill.
"The House had a golden opportunity to give people some real protections for their financial privacy," said Mary Griffin, insurance counsel for Consumers Union. "But a majority of the lawmakers buckled under industry pressure and refused to give consumers even the minimum amount of privacy they deserve. Lawmakers sent a clear message that they think industry profits are more important than people's privacy."
As approved, the bill would allow a financial firm to continue the practice of sharing people's financial data with its affiliates, as well as outside companies that market products in partnership with the institution, without the person's permission. It would also allow broad disclosures of private medical information without a patient's permission.
Supporters of the bill said it would provide significant protection for privacy by letting people say 'no' to institutions sharing confidential account numbers with telemarketers and other outside companies. But the bill is riddled with loopholes that would let firms continue to sell and share information with outside parties under certain arrangements. The bill's backers also argued that consumers have the freedom to choose a firm with a privacy policy to their liking. But a survey by CU's Washington office shows that the top 10 banks offer few if any privacy protections for their customers.
"The issue comes down to privacy versus piracy," Griffin said. "Do you deserve to have some control over your own information, or should the industry be able to profit from sharing your information without your permission?"
Consumers Union says the fight for privacy isn't over yet. With this Pandora's box of privacy concerns open to the public, the issue is certain to gain more attention as Congress works on a final version of the bill. Meanwhile, the White House has indicated that it isn't fully satisfied with the bill in its current form, particularly the privacy provisions. Consumers Union says it will continue to work to see that the privacy rights of consumers are fortified and fully protected.
Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.
